In that scenario, adjusted EPS would be lower than basic EPS. What Are Some Limitations of EPS? When looking at EPS to make an investment or trading decision, be aware of some possible drawbacks. For instance, a company can game its EPS by buying back stock, reducing the number of ...
What Does Magnification X Of EPs Really Mean?tezster
What Does a P-Value of 0.001 Mean? A p-value of 0.001 indicates that if the null hypothesis tested were indeed true, then there would be a one-in-1,000 chance of observing results at least as extreme. This leads the observer to reject the null hypothesis because either a highly rare ...
there's usually a disclaimer in the earnings report -- something like "Adjusted net income per share does not have any standardized meaning prescribed by GAAP." As always, investors should exercise caution when taking the
share is an eps calculation where certain extraordinary or non-recurring components of income are either added or removed. for instance, the fair value cost of issuing stock options to employees is often added back in calculating adjusted earnings per share. what does it mean if eps is negative...
Why does profit matter to investors? What’s the difference between profit, gross profit, profit before tax, net income, net profit, and net earnings? What is the difference between profit, revenue, and sales? What’s the difference between profit and profit margin?
What does this mean? (Added 20 September 2007) Mac: Why does Stata crash when I open the Data Editor in Stata for Macintosh? (Added 10 September 2007) Data management: How can I apply the original value and variable labels after using the reshape command? (Added 30 August 2007) ...
While trailing NPL data looks healthy for China’s banks, as does provisioning, it is probably safe to assume that it’s too early for some of the recent loans to go bad. But have a read of Michael Pettis’slatest post; it doesn’t bode particularly well for the returns on huge swath...
What does it mean when a stock is overbought vs. oversold? An RSI in the higher range — particularly above 70 — shows that a stock has had strong upward price momentum. However, that momentum can often indicate that the stock is overbought. Investors may be more likely to sell to capit...
“Just because a stock is selling at a relatively low PE ratio certainly does not mean that it is undervalued,” he says. “It may sell at a low PE ratio because investors are pessimistic regarding future earnings from the stock.” Discerning between undervalued stocks and potentially troublesom...