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Ratio Analysis: - Investment Ratios
Ratio Analysis: - Investment Ratios
Ratio Analysis: - Investment Ratios
• Investment ratios
– Earnings per share (EPS)
– Price/Earnings (P/E) ratio
– Dividend per share
– Dividend yield
– Dividend payout
– Dividend cover
EARNINGS PER SHARE (EPS)
Earnings per share (EPS)
= Profits available to ordinary shareholders
Weighted average number of ordinary shares in issue
Where
D1 – Dividend per share for the year
P1 – Share price at the end of the year
P0 – Share price at the start of the year
Total Shareholder Return
Shows total return made on shares in last
year.