Investor Ratios Flashcards
1
Q
what is an EPS
A
earnings per share is a type of ratio that represents the amount of profit allocated to an outstanding common stock.
2
Q
EPS formula?
A
profit after tax/number of ordinary stocks
3
Q
what is a P/E ratio?
A
price per earnings measures the relationship between a company’s stock price and earning per share (EPS). It helps the investors asses the value of stocks.
4
Q
P/E ratio formula?
A
share price/earnings per share
5
Q
what is a dividend yield ratio?
A
shows how much a company pays in dividends relative to its stock price.
6
Q
Dividend yield formula?
A
dividends per share/share price x 100%
7
Q
what is a divided cover?
A
assesses the companies ability to cover its dividend yield payments with its earnings.
8
Q
dividend cover formula?
A
profit after tax/dividends.
