Whenever we talk about Earnings per Share (EPS), there are a number of variants like Reported EPS, On-going EPS, Proforma EPS and Cash EPS. For our analysis, we have considered Cash EPS, which takes cash flows of an entity into consideration. To arrive at Cash EPS, one has to first determine the cash flow from operating activities, which has to be then divided by the number of shares outstanding. Cash EPS generally depicts the amount of cash flow generated per share by the company. Analysts consider Cash EPS as being fool proof, as it stands out when compared to the other variants of EPS (since Cash EPS considers factual cash flows, which generally cannot be tinkered with). The interpretation of this ratio is: The higher the ratio, the better the company. And surprisingly, the top ten list churns out many new and interesting names.
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Source:- IIPM Editorial
Visit also:- IIPM Publication, Business & Economy & Arindam Chaudhuri Initiative
For complete IIPM article click here
Source:- IIPM Editorial
Visit also:- IIPM Publication, Business & Economy & Arindam Chaudhuri Initiative
