Dividend yield is the percentage return a company pays out to its shareholders in the form of cash dividends. It is an easy way to compare the relative attractiveness of various dividend-paying stocks. Most investors prefer stocks paying relatively high, stable dividend yields.
Dividend payout ratio measures the percentage of a company’s earnings per share that are paid to shareholders as dividends . It determines what portion of earnings has been retained in the business.
Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. EPS is calculated as net income (the profit a company makes after paying all expenses and taxes) divided by the number of shares outstanding (total number of shares that a company has) during the same period. If the number of shares out in the market has changed during that period, a weighted average of the quantity of shares is used.
EPS is just one of the metrics to determine a company’s profitability. It is also a major component of another important metric, price per earnings ratio (P/E).
Price Earnings Ratio (P/E) is one of the oldest and most frequently used metrics to determine the value of a company’s stock. To calculate the P/E, simply divide the company’s current share price by its earnings per share (EPS).
In general, a higher P/E ratio suggests that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E. It is usually more useful to compare the P/E ratios of one company to other companies in the same industry, to the market in general or against the company’s own historical P/E.
Book Value per Share is a measure used by owners of common shares in a company to determine the level of safety associated with each individual share after all debts are paid accordingly.
Total Shareholder Equity – Preferred Equity
       No. of Outstanding Shares
(Total Shareholder Equity – Preferred Equity)/No. of Outstanding Shares
Price to Book Value per Share is used to compare a company’s net assets available to common shareholders relative to the current share price. To calculate, divide the book value per share by the current share price.
Total Return is the actual rate of return of an investment over a given evaluation period. Generally this tells the investor the percentage gain or loss on an investment based on the buying price.
Dividend yield is the percentage return a company pays out to its shareholders in the form of cash dividends. It is an easy way to compare the relative attractiveness of various dividend-paying stocks. Most investors prefer stocks paying relatively high, stable dividend yields.
Dividend payout ratio measures the percentage of a company’s earnings per share that are paid to shareholders as dividends . It determines what portion of earnings has been retained in the business.
Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. EPS is calculated as net income (the profit a company makes after paying all expenses and taxes) divided by the number of shares outstanding (total number of shares that a company has) during the same period. If the number of shares out in the market has changed during that period, a weighted average of the quantity of shares is used.
EPS is just one of the metrics to determine a company’s profitability. It is also a major component of another important metric, price per earnings ratio (P/E).
Price Earnings Ratio (P/E) is one of the oldest and most frequently used metrics to determine the value of a company’s stock. To calculate the P/E, simply divide the company’s current share price by its earnings per share (EPS).
In general, a higher P/E ratio suggests that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E. It is usually more useful to compare the P/E ratios of one company to other companies in the same industry, to the market in general or against the company’s own historical P/E.
Book Value per Share is a measure used by owners of common shares in a company to determine the level of safety associated with each individual share after all debts are paid accordingly.
Total Shareholder Equity – Preferred Equity
       No. of Outstanding Shares
(Total Shareholder Equity – Preferred Equity)/No. of Outstanding Shares
Price to Book Value per Share is used to compare a company’s net assets available to common shareholders relative to the current share price. To calculate, divide the book value per share by the current share price.
Total Return is the actual rate of return of an investment over a given evaluation period. Generally this tells the investor the percentage gain or loss on an investment based on the buying price.
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