The earnings per share formula is useful for valuing stocks. It’s a key part of the widely-used price-to-earnings ratio. And by gaining a better understanding of these concepts, you can make better ...

Refers to how much equity there is in a company today. It will be listed in the company's annual report. Example: If a company's assets are worth $50 million and it owes $30 million, its book value is ...

Earnings per share is the net income made per share of stock within a given time period, typically quarterly or annually. To determine the EPS, the company's net profits are divided by the number of ...