JBZ, it obviously is incorrect but why is the ques
Post# of 9903
Posted On: 08/22/2013 10:20:53 PM
JBZ, it obviously is incorrect but why is the question? But it gets worse. The EPS is what NET EARNINGS are on a PER SHARE basis. Don't forget that has to be multiplied by a PE (price earnings ratio) which the run of the mill common number maybe 10. So after multiplying that times the EPS, that would be $3,000 Per Share which would be our share price. lol. I'll take that.
Here's a sample personal formula I've used for years in figuring out a fair valuation share price.
Revenues x .50 EBIT (earnings before interest/taxes) x .60 (40% tax) divided by number of outstanding shares = EPS (earnings per share) x PE (price earnings ratio) = fair share price.
Here's a sample personal formula I've used for years in figuring out a fair valuation share price.
Revenues x .50 EBIT (earnings before interest/taxes) x .60 (40% tax) divided by number of outstanding shares = EPS (earnings per share) x PE (price earnings ratio) = fair share price.
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