Quality of earnings: related pages
Earnings yield
EPS ÷ share price.
PE ratio
Share price divided by earnings per share.
Earnings accretive
Acquisitions are said to be earnings accretive if they increase EPS.
Value investing
A style of investing based on picking shares that have low valuations relative to their current profits, cash flows and dividend yield.
Adjusted EPS
EPS adjusted for non-cash or one-off items such as amortisation and exceptional costs to give a better indication of underlying trends.
Cash flow
The amount of cash a company actually receives or pays. There are several measures in common use.
Free cash flow
How much money a company could pay shareholders out of profits without expanding, but without running down its existing operations either.
Copyright Graeme Pietersz © 2005-2019