Earnings & Valuation
EPS (Earnings Per Share)
A company's net profit divided by the number of outstanding shares. The most common measure of profitability. Earnings beats (actual > estimate) typically push stock prices higher.
EPS = Net Income / Shares Outstanding
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Earnings Calendar →Related Terms
Revenue
Total income generated from sales of goods or services before any costs are deducted. Also called the "top line." Growth in revenue signals expanding business; shrinkage is a red flag.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization. A proxy for operating cash flow used to compare companies across different capital structures and tax jurisdictions.
Guidance
Forward-looking estimates provided by company management about expected future revenues, earnings, or margins. Downward guidance revisions often hit stock prices harder than a missed quarter.
P/S Ratio
Price-to-Sales ratio. Useful for valuing pre-profit companies where P/E is meaningless. Common in high-growth tech sectors.
P/B Ratio
Price-to-Book ratio. Compares market value to net asset value (assets minus liabilities). A P/B below 1 may signal undervaluation or distress.
DCF (Discounted Cash Flow)
A valuation method that estimates a company's value based on its projected future cash flows, discounted back to present value using a rate that reflects risk.
