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I've always wondered why people use EPS - What if Apple issued more outstanding shares during this timeframe? Wouldn't that skew this metric without representi
by bduerst 10y ago
I've always wondered why people use EPS - What if Apple issued more outstanding shares during this timeframe?
Wouldn't that skew this metric without representing that?
- bkjelden 10y agoEPS is only really relevant if given in the same breath as share price. P/E ratio is the more meaningful (and shares-outstanding-invariant) metric.
- sumedh 10y agoYou can look at the EPS trend for many years and form your conclusions. If its going up that is good, if its down or flat you should be asking why.
- qeternity 10y agoWhen a company does something dilutive (or anti-dilutive) then previous metrics are recalculated (split adjusted) for comparison. Also, as someone else mentions, EPS in its own right is meaningless. P/E ratios are a more common (albeit flawed) way to compare companies' relative valuations.