Also called earnings per share
EPS
Profit for the last twelve months divided by the share count. Accounting profit, not cash, which is why Angie values the cash instead.
A fuller explanation of this one is still being written. The definition above is the short answer.
See also
- Trailing P/E — What the market pays today for each dollar the company earned last year.
- Earnings yield — Earnings for every dollar invested, which makes a stock directly comparable to a bond yield. A company losing money has none.
- Free cash flow — The cash left for investors after keeping the business running. This is the number a DCF actually values, taken from the most recent fiscal year.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
