EPS & Book Value

The video discusses two key ratios which can help you understand how a company is doing per share of leverage that has been taken.  Earnings per share, or EPS, is important in understanding how much a company is making off each share they have issued.  A high EPS can indicate that a company should be paying a higher dividend.  This EPS number can be found on the income statement.

Its counterpart on the balance sheet is the book value.  The book value divides shareholders equity by the number of shares outstanding.  It basically allows the investor to understand if their shares are holding enough value based on the number of shares outstanding.
Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

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