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Metrics

Price to Earnings Ratio (P/E)

The price to earnings ratio (denoted P/E) measures the relationship between the share price to its earnings per share. It is considered one of the most important metric of a company because comparing two similar companies’ P/E shows us which is a better value. Sometimes, people will refer to this ratio as the [...]

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Earnings Per Share (EPS)

One of the easiest metric to calculate and one where most financial sites provide, earnings per share (EPS) is one of the most important measure of a companies strength. Obviously, the higher this number, the more money the company is making.
Calculating EPS
To calculate this ratio, simply divide the company’s net income by the number [...]

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