How do you calculate expected EPS?
Divide the expected earnings of the company by the number of shares and you have the expected EPS of the company.
What is a good PE ratio for a stock?
P/E Ratios by Industry
Different industries have different p/e ratio ranges that are considered normal for their industry group. For example, health care companies may sell at an average p/e ratio of 34, while energy sector companies may only trade at an average p/e ratio of 12.
What is a good PE ratio for a company?
The average P/E for the S&P 500 has historically ranged from 13 to 15. For example, a company with a current P/E of 25, above the S&P average, trades at 25 times earnings. The high multiple indicates that investors expect higher growth from the company compared to the overall market.
What is the formula for EPS?
Earnings per share or basic earnings per share is calculated by subtracting preferred dividends from net income and dividing by the weighted average common shares outstanding. The earnings per share formula looks like this.
What is the average EPS of the S&P 500?
|Last Updated||Jan 16 2020, 15:20 EST|
|Average Growth Rate||6.08%|
|Value from 1 Year Ago||36.36|
|Change from 1 Year Ago||-6.52%|
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