bro literally yesterday i was watching your calculus videos to prepare for next semester. and now today, youre helping me learn stocks. what cant you do?
Holy crap, I watched your video last week for Organic Chemistry homework and now I'm watching ur P/E video as I'm learning stocks. When I started the video and heard your voice, I thought I clicked on a Chemistry video LOL
Hi. Thanks for the video and explanation. For the first time I know what are P/E and EPS. But I see 1 thing wrong in this video is: P/E ratio doesn't have dollar unit. In video you calculated P/E is $5.
Where do you get your information from? Hope you don't take my question the wrong way, but I am genuinely interested where youre learning this from since I'm interested in learning more about finance.
Im just trying to figure out where preferred and common stocks come into play in the equation... like net income minus preferred dividends,but what about the shareprices? because the number of shares is different then the prices.
hello I am pretty sure that your comment that based on higher EPS company A stock is better deal is incorrect hypothesis. Both companies have same Net Income so both are identical in earnings. one company has just issued more stock so the stock price should be 5x difference and P/E should be the same.
how would i calculate the EPS of this David’s Magic Stores has an operating profit of $230,000. Interest expense for the year was $33,000; preferred dividends paid were $29,000; and common dividends paid were $45,000. The tax was $51,600. David’s Magic Stores has 25,000 shares of common stock outstanding. im so stuck
A company with a lower E.P.S. may not necessarily be doing bad they just might need to decrease shares outstanding which is why companies do stock buybacks... the company may be doing great on earnings but in order to immediately increase E.P.S. to each shareholder or potential shareholder they may just need to decrease too many perceived shares outstanding while working to still increase earnings more and more overtime just as long as the E.P.S. is not actually negative a person has to do total due diligence on a company that they might want to hold shares of because all is NOT equal between to companies there WILL be differences to compare between two balance sheets even in the same industry and everything has to be considered. Ex comparing Walmart to Target Amazon to eBay or McDonald's to Chipotle same industry but two different companies with two individual different balance sheets.
@@sonyabadass outstanding shares is the combination of shares traded in the open market(float shares) and restricted shares which is owned typically by executives within the company.
I stopped at the first ad, but that denominator isn’t right. It should be weighted average shares outstanding, which can be a vastly different number for growth companies. Not surprising that a chemistry tutor wouldn’t understand per-share ratios, but scary to see people say they’re “learning stocks” from these videos.
