Posts Tagged ‘earnings’

Income statement as report card of earnings

A business is only worth the profit that it will generate for its owners from now until doomsday, discounted back to the present, adjusted for inflation. As the “report card” of those earnings, income statement will help determining the price you should be willing to pay for a business.
Income statement, also called profit and loss [...]

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What is Price Earnings Ratio (PER)

The Price Earnings Ratio (PER) is a measure uses in valuing both the stock market as a whole and individual stocks.
PER is calculated as the ratio of a company’s share price to its earnings per-share. The value is the same whether the calculation is done for the whole company or on a per-share basis.
PER = [...]

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