Apple Google Sirius XM Pandora Media Live Nation Beta 1.02 1.51 0.79 2.02 1.52 E
ID: 2824822 • Letter: A
Question
Apple
Sirius XM
Pandora Media
Live Nation
Beta
1.02
1.51
0.79
2.02
1.52
EPS
10.36
23.56
$ 0.15
$ -2.30
$ -0.54
P/E
18.37
48.94
46.8
N/E
N/E
Dividend
2.92
N/A
0.04
N/A
N/A
Market Cap
935.6B
796.96B
31.08B
2.05B
10.36B
Is a possible gauge of the full amount earned on a stock investment the EPS times the number of shares purchased?
Apple
Sirius XM
Pandora Media
Live Nation
Beta
1.02
1.51
0.79
2.02
1.52
EPS
10.36
23.56
$ 0.15
$ -2.30
$ -0.54
P/E
18.37
48.94
46.8
N/E
N/E
Dividend
2.92
N/A
0.04
N/A
N/A
Market Cap
935.6B
796.96B
31.08B
2.05B
10.36B
Explanation / Answer
No, EPS*number of shares purchased is not a possible gauge of the full amount earned on a stock investment.
EPS = Profit after tax/Total no. of equity shares issued.
The reason why the metric (EPS*number of shares purchased ) is not a possible gauge of the full amount earned on a stock investment is that the impact of dividends are ignored. Investors earn dividend on stocks that they have purchased but EPS metric does not consider dividend earnings from a stock.
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