Categorized | Fundamental Analysis

Per Share Evaluation

Per-share data can involve any number of items in a company’s financial position. In corporate financial reporting – such as the annualĀ and quarterly reportĀ – most per-share data can be found in these statements, including earnings and dividends.

Additional per-share items (which are often reported by investment research companies) also include sales (revenue), earnings growth and cash flow. To calculate sales, earnings and cash flow per share, a weighted average of the number of shares outstanding is used. For book value per share, the fiscal yearend number of shares is used. Investors can rely on companies and investment research services to report earnings per share on this basis.

The absolute dollar amounts for earnings, sales, cash flow and book value are worthwhile for investors to review on a year-to-year basis. However, in order for this data to be used in calculating investment valuations, these dollar amounts must be converted to a per-share basis and compared to a stock’s current price. It is this comparison that gives rise to the common use of the expression “multiple” when referring to the relationship of a company’s stock price (per share) to its per-share metrics of earnings, sales, cash flow and book value. These so-called valuation ratios provide investors with an estimation, albeit a simplistic one, of whether a stock price is too high, reasonable, or a bargain as an investment opportunity.

Lastly, it is very important to once again to remind investors that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company’s historical performance and use peer company/industry comparisons to put any given company’s ratio in perspective. This is particularly true of investment valuation ratios. This paragraph, therefore, should be considered as an integral part of the discussion of each of the following ratios.

Read more: http://www.investopedia.com/university/ratios/investment-valuation/ratio1.asp#ixzz1uLVmt6pc

Read more: http://www.investopedia.com/university/ratios/investment-valuation/ratio1.asp#ixzz1uLVAiAwg

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Symbol Bid Ask Spread
EURUSD 1.17440 1.17460 2
GBPUSD 1.31860 1.31890 3
USDCAD 1.26550 1.26580 3
USDJPY 113.670 113.690 2
USDCHF 0.98580 0.98610 3
AUDUSD 0.77800 0.77830 3
NZDUSD 0.69200 0.69250 5
EURGBP 0.89050 0.89080 3
EURCHF 1.15790 1.15820 3
EURJPY 133.510 133.540 3
AUDJPY 88.440 88.490 5
GBPJPY 149.890 149.950 6
XAUUSD 1279.57 1279.97 40
XAGUSD 17.053 17.103 5