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I never understand why earnings per share is always mentioned. Without knowing the number of shares and some math the number is totally useless. It's like sayin
by Ididntdothis 7y ago
I never understand why earnings per share is always mentioned. Without knowing the number of shares and some math the number is totally useless. It's like saying comparing the price of a single share of two companies. It's meaningless on its own.
- smabie 7y agoWell, as an investor it’s arguably important. I care about how profitable my chunk of the company is, not how profitable the entire thing is.
- take_a_breath 7y agoThis is 100% true from an investor standpoint. The breakdown is when EPS is used as a measure of economic or corporate health.
- smabie 7y agoTotally. Price to book is a better measure in that case.
- Ididntdothis 7y agoPrice to earning ratio gives you the same information but allows you to compare companies.