Capsim report price per earning ratio

Financial Structure Stock Price

• Team Member Guide
• Online Situation Analysis
• Capstone Spreadsheet
• Financial Structure
  • Structure Defined
  • Right Side
  • Policy Decision
  • Market Share
  • Return On Sales
  • Return On Assets
  • Asset Turnover
  • Return On Equity
  • Stock Price
  • Market Cap

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  Earnings Per Share

  Earnings per share (EPS) looks at the wealth that is being created on each share of stock. It is a somewhat useful predictor of future earnings. The EPS will either wind up in the stockholders hands directly as a dividend, or it will be retained and used to enhance the wealth creation capabilities of the company. Therefore, one school of thought says that a stock price should reflect the present value of a future EPS stream, and if we can somehow predict that stream we can predict the stock price.