Statistics - Earnings Per Share (EPS)
Here's the description of EPS from my book
Stock Market Investing ...
Quote:
This is the king of growth measures, the famous bottom line that everybody lives or dies for.
The more a company earns, the more successful it is and the more desirable it becomes to investors. That should make the stock price rise.
The book also said that ideally, a company's EPS should hopefully be ...
- large,
- growing larger every year
- and hopefully growing larger at accelerating rate?
Looking for the EPS Measurement Online
Went in search of the EPS values online, and was able to find the current EPS values listed in lots of places. But it looks like the EPS values for all the earlier years may not be available in too many places - without a subscription service?
Was only able to find the current EPS for Visa (V) listed on Yahoo Finance ...
https://ca.finance.yahoo.com/q?s=V
However, found the EPS for the last 5 years listed for free on a site called Morningstar ...
http://beta.morningstar.com/stocks/xnys/v/quote.html
There was also this subscription site that gives a couple of free searches a day, that can graph a stock's yearly EPS - so this is a graph for Visa with the stock price and the EPS on one graph, with a different y-axis ...
http://www.gurufocus.com/chart/V
Wasn't sure what to make of that one EPS listed on the Yahoo page - because looking at this year's EPS all by itself, that $2.53 didn't look so great
So guess it was quite helpful to be able to see the EPS graph alongside the stock price graph on gurufocus.com, to see how earnings growth will tend to lead to stock price growth over time, if the company's doing okay?
More Examples of EPS
Here's another graph of a company's yearly EPS alongside the stock price for the last 15 years (different y-axes), where earnings and the stock price seem to grow at a similar rate - United Health (UNH) may be part of the Dow?
And then here's Amaya
Guess the silver lining about knowing so much about Amaya, is that it comes in handy when it's helpful see what a company might look like when it doesn't seem like it's healthy and growing over the long-term?
And then there's some companies whose graphs seem to be somewhere in-between? Not so erratic, but not super steady either? Like here's Disney's (DIS) ...
If Disney's earnings are steadily rising, then was that rise and fall of the stock price over the last couple of years just a bubble? That confuses me, because isn't the market supposed to be efficient?
It looks like Amazon's is a little off as well ...
Was looking online to see if people thought Amazon might be in a bit of a bubble or something ... lots of different opinions on the internet
Maybe there's enough stocks out there with steadily growing graphs, that maybe can just stay away from the more complicated ones that might need some interpretation?
The gurufocus.com site's been really buggy tonight - also, am out of free searches for the day
Can post some more graphs of some more stocks tomorrow ...
Last edited by TrustySam; 08-28-2017 at 07:03 PM.