Whenever we talk about EPS (earning per share),we just treat it just only one individual terms of stock trading..But the thing is not as simple as a very single terms of trading..Did you ever think that the EPS has three types?
Someone will say that,"oh really,EPS has 3 types?,I thought EPS is only for one term."
Yes,there are three types of EPS of a company.
(one) is current EPS,
(second) is Past EPS,which is also known as Trailing EPS,
And the (last one) is Projected EPS,which is also known as Future EPS or Forward EPS.
Now which EPS is the most important to make a investment decision?
-Obviously The Current EPS,because no other value can give as much good idea as a current ongoing EPS of a Company.And also if a company's current EPS is strong than we can easily assume that the future EPS will also be the good one.In fact a company's forwarding EPS is mainly counted on the basis of the current EPS.So it will be a good practice to search for the current EPS before buying the shares of that company.
The rest is Past EPS,which is normally based on the Past years performance of a company.Is it important to know about the Past,Trailing EPS before buying a share?
The answer is NOT EVERY TIME,BUT SOMETIMES it help to assume whether the company is going to give any good dividend or not.But its not obvious that a company which has no good past year's performance,will not be good in the coming time But if the past performance based on EPS is good than,at least this is obvious that the buyer of this share will not lose their money.
Someone will say that,"oh really,EPS has 3 types?,I thought EPS is only for one term."
Yes,there are three types of EPS of a company.
(one) is current EPS,
(second) is Past EPS,which is also known as Trailing EPS,
And the (last one) is Projected EPS,which is also known as Future EPS or Forward EPS.
Now which EPS is the most important to make a investment decision?
-Obviously The Current EPS,because no other value can give as much good idea as a current ongoing EPS of a Company.And also if a company's current EPS is strong than we can easily assume that the future EPS will also be the good one.In fact a company's forwarding EPS is mainly counted on the basis of the current EPS.So it will be a good practice to search for the current EPS before buying the shares of that company.
The rest is Past EPS,which is normally based on the Past years performance of a company.Is it important to know about the Past,Trailing EPS before buying a share?
The answer is NOT EVERY TIME,BUT SOMETIMES it help to assume whether the company is going to give any good dividend or not.But its not obvious that a company which has no good past year's performance,will not be good in the coming time But if the past performance based on EPS is good than,at least this is obvious that the buyer of this share will not lose their money.
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