Stock price = price-to-earnings ratio / earnings per share. Last updated March 6, 2019 You can use this handy stock calculator to determine the profit or loss from buying and selling stocks. By calculating the total look-through earnings generated by his stock holdings, we discover that John has look-through earnings of $18,827.50 after-tax ($8,627.50 + $10,200).

Options give you the right but not the obligation to buy or sell a financial asset at a predetermined price and specific date. If you want to compare stocks between different publicly-held companies, it's helpful to know how to calculate a metric called earnings per share (EPS).This tool helps traders overcome the challenge of evaluating stocks with a true “apples-to-apples” comparison. A calculator to quickly and easily determine the profit or loss from a sale on shares of stock. While earnings reports must be taken in context, earnings per share are the best way to measure the value of a company's stock. While earnings reports must be taken in context, earnings per share are the best way to measure the value of a company's stock. Learn how to calculate earnings per share and why it is an important gauge in determining a stock’s value and the profitability of a company. Every time a company sells a customer something, it produces revenue. The handy price-to-sales ratio. Earnings yield is a stock market analysis tool used to compare the relative value of stocks and the value of the overall market to alternative investments like Treasury bonds. Add multiple results to a worksheet to view total gains. It also calculates the return on investment for stocks and the break-even share price. Earnings yield are the earnings per share for the most recent 12-month period divided by the current market price per share. The price-to-earnings ratio or P/E is one of the most widely-used stock analysis tools used by investors and analysts to determine a stock's valuation. In the world of investments, a company’s price-to-earnings ratio, or P/E ratio, is a measure of its stock price relative to its earnings. If you’re trying to determine whether a stock is a good investment, the P/E ratio can help you gauge the future direction of the stock and whether the price is, relatively speaking, high or low compared to the past or other companies in the same sector. Earnings are an important measure for public companies (those that offer shares of stock to the public) because investors base investment decisions on earnings, and stock price is based on earnings.

Finds the target price for a desired profit amount or percentage. Earnings are an important measure for public companies (those that offer shares of stock to the public) because investors base investment decisions on earnings, and stock price is based on earnings. How to Calculate the Return on an Option.

However, during that period, if the number of outstanding shares increased from 10 million to 40 million, we can calculate that earnings per share actually declined from $1.00 to $0.50. How to Calculate Earnings Yield. Revenue is the income generated by a company for peddling goods or services. Unlike bonds, stocks make you an "owner" of the company. For example, if a company issues 100 shares of stock outstanding and you would buy five shares, you would be entitled to 5% of the company's assets and earnings.