Refers to the ratio of after-tax profit to total share capital. Whether it is the net profit that ordinary shareholders can enjoy or the net loss that each share should bear. Earnings per share are usually used to reflect the operating results of enterprises and measure the profitability and investment risk of common stocks. It is one of the important financial indicators for investors and other information users to evaluate the profitability of enterprises, predict the growth potential of enterprises, and then make relevant economic decisions.
2. Net assets per share (NPS):
Net assets per share refers to the ratio of shareholders' equity to total shares. Its calculation formula is: net assets per share = shareholders' equity/total number of shares. This indicator reflects the present value of assets owned by each share. The higher the net assets per share, the more the value of assets per share owned by shareholders; The less the net assets per share, the less the value of assets per share owned by shareholders. Generally speaking, the higher the net assets per share, the better.
3. Return on equity (ROE):
Return on net assets is the percentage of net profit and average shareholders' equity, which is the percentage rate obtained by dividing the company's after-tax profit by its net assets. This index reflects the income level of shareholders' equity and is used to measure the efficiency of the company's use of its own capital. The higher the index value, the higher the return on investment. This indicator reflects the ability of self-owned capital to obtain net income.
Extended data
Other indicators of stock investment:
1, price-earnings ratio (PE):
P/E ratio is also called P/E ratio, stock P/E ratio or market P/E ratio. P/E ratio is one of the most commonly used indicators to evaluate whether the stock price level is reasonable. Divide the stock price by the annual earnings per share (the market value of a company divided by the annual profits attributable to shareholders can also get the same result).
2. P/B ratio (PB):
P/B ratio = share price/book value, where book value refers to: total assets _ intangible assets _ liabilities _ preferred stock equity; It can be seen that the so-called book value is the value of the company when it is dissolved and liquidated.
3. P/E ratio relative profit growth rate (PEG):
The ratio of price-earnings ratio to relative profit growth rate is to divide the company's price-earnings ratio by the company's profit growth rate. PEG index (P/E ratio relative profit growth rate) is a stock valuation index invented by Jim Slater, which is developed on the basis of PE (P/E ratio) valuation, and it makes up for the deficiency of PE in estimating the dynamic growth of enterprises.
Baidu Encyclopedia-Earnings per share
Baidu Encyclopedia-Net assets per share
Baidu encyclopedia-return on net assets
Baidu Encyclopedia-P/E ratio
Baidu Encyclopedia-P/B ratio
Baidu Encyclopedia-P/E ratio relative profit growth rate