Learning to read the financial pages is not merely about tracking stock prices; it is a critical exercise in economic citizenship, empowering individuals to make informed decisions about their capital, careers, and future political choices.
Posts tagged as “Earnings Per Share (EPS)”
Shareholder Value Analysis (SVA)
October 18, 2025 |
Shareholder Value Analysis (SVA), often associated with the work of Alfred Rappaport, is a sophisticated approach to financial management and strategic decision-making. It is founded on the principle that the primary objective of a company should be to maximize the economic value created for its equity shareholders.
Why Economic Value Added (EVA) Is the Best Measurement Tool for Creating Shareholder Value?
September 28, 2025 |
Unlike traditional accounting measures such as net income or earnings per share (EPS), EVA deducts the full cost of capital—including both debt and equity—from net operating profit after taxes (NOPAT).
Differences Between Traditional P/E Ratio And CAPE Ratio
September 28, 2025 |
The primary distinction between the Traditional Price-to-Earnings (P/E) Ratio and the Cyclically Adjusted Price-to-Earnings CAPE Ratio lies in their approach to measuring the "Earnings" component, fundamentally altering their purpose, volatility, and utility for investors.
Allocating Corporate Capital Fairly
September 25, 2025 |
The core principle of "fairness" in this context is generally tied to economic value creation, which means prioritizing investments that promise the highest risk-adjusted returns and align with the company's long-term strategy.
The Graham Number
September 14, 2025 |
Ever felt overwhelmed by the sheer volume of financial metrics when trying to figure out if a stock is a good buy? You're not alone. Enter the Graham Number.
Investment Analysis
August 8, 2025 |
Investment analysis involves assessing various investment opportunities to determine their potential returns and risks.
Understanding Financial Reporting
August 6, 2025 |
Financial reporting stands at the heart of this transparency, acting as a structured and standardized method of conveying an organization's financial health to stakeholders.
Financial Statement Analysis
July 30, 2025 |
It involves a comprehensive examination of a company's financial reports, primarily the Income Statement, Balance Sheet, and Cash Flow Statement, to gain insights into its financial health, performance, and future prospects.
What Is Additional Public Offering (APO)?
July 18, 2025 |
A Follow-On Offering (FPO), also known as a Seasoned Equity Offering (SEO) or Additional Public Offering (APO), is a subsequent public issuance of stock by a company that has already gone public through an Initial Public Offering (IPO).
Trailing P/E vs. Forward P/E
July 3, 2025 |
The core difference lies in the earnings component used in the calculation: whether it's based on past (trailing) earnings or future (forward) estimated earnings.
Investor Ratios: Price/Earnings to Growth (PEG)
July 2, 2025 |
For investors looking beyond just current earnings to assess a stock's potential value, the Price/Earnings to Growth (PEG) ratio is an invaluable tool.
Fluctuations in Market Capitalization
June 16, 2025 |
Market capitalization (market cap) is a dynamic measure, representing the total value of a company's outstanding shares.
Technical Analysis vs. Fundamental Analysis
June 13, 2025 |
Use fundamental analysis to identify a list of high-quality companies or assets with strong long-term prospects and then employ technical analysis to determine the best time to enter or exit positions in those assets.
Full-year guidance is a publicly traded company's forecast of its expected financial performance for its entire fiscal year. It includes projections for key metrics.
Stock buybacks, or share repurchases, are a common strategy employed by companies to repurchase their own shares from the open market.
How to Invest in a Good Business?
August 20, 2023 |
There are many ways to invest in a good business. A good business means a business that is performing well on the market in the long-term.