Homework SourseApple Google Sirius XM Pandora Media Live Nation Beta 102 15
Apple
Sirius XM
Pandora Media
Live Nation
Beta
1.02
1.51
0.79
2.02
1.52
EPS
10.36
23.56
$ 0.15
$ -2.30
$ -0.54
P/E
18.37
48.94
46.8
N/E
N/E
Dividend
2.92
N/A
0.04
N/A
N/A
Market Cap
935.6B
796.96B
31.08B
2.05B
10.36B
Is a possible gauge of the full amount earned on a stock investment the EPS times the number of shares purchased?
| Apple | | Sirius XM | Pandora Media | Live Nation | |
| Beta | 1.02 | 1.51 | 0.79 | 2.02 | 1.52 |
| EPS | 10.36 | 23.56 | $ 0.15 | $ -2.30 | $ -0.54 |
| P/E | 18.37 | 48.94 | 46.8 | N/E | N/E |
| Dividend | 2.92 | N/A | 0.04 | N/A | N/A |
| Market Cap | 935.6B | 796.96B | 31.08B | 2.05B | 10.36B |
Solution
No, EPS*number of shares purchased is not a possible gauge of the full amount earned on a stock investment.
EPS = Profit after tax/Total no. of equity shares issued.
The reason why the metric (EPS*number of shares purchased ) is not a possible gauge of the full amount earned on a stock investment is that the impact of dividends are ignored. Investors earn dividend on stocks that they have purchased but EPS metric does not consider dividend earnings from a stock.
