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These are measurements of the total "value" of a publicly-traded corporation. Investors need a way to judge how much a company's stock is worth. To evaluate this, analysts have come up with various earnings valuation models. Earnings are net profits, i.e. what's left over after expenses. Investors often want to know the earnings per share (EPS). They also want to calculate the price/earnings (P/E) ratio, i.e. the stock price divided by the earnings. This is the most common earnings valuation model.

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โˆ™ 2006-04-05 10:36:44
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Q: What are earnings valuations?
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Related questions

What are some abnormal earnings and valuations in banking industries?

Abnormal earnings

Where can one find free car valuations?

There are numerous sites that offer free car valuations. Some that are offer such valuations are 'What Car', 'Confused', 'Wisebuyers', 'Glass's' and 'Car Point'.

Why are stocks harder to value than bonds?

In bond valuations there are more quantifiable attributes to be used than in stock valuations. For bonds, you have predetermined cash payments, exact maturity or call date, and assessments from rating agencies with respect to insolvency risks. In stocks, there is no maturity, dividends change or are nonexistent, and earnings very over time. This is why mathematical discounted cash flow models work better for bonds than for stocks. Analysts, however, use these models for both. For stocks probaly the most commonly used method is comparison of Price to Earnings ratios among comparable companies.

What companies specialize in brand valuations?

CoreBrand is the leading company that specializes in brand valuations. Many companies when they have no idea how much to ask for their product will seek the help of this company in determining a proper value to be placed on their said products.

Where can business valuations services be found?

Many companies offer business valuations services, for example ArrowFish Consulting. Other companies that offer these services are Greener Equity, Biz By Owner, the Woodbrige Group and Online Business Appraisal.

What is Current Earnings on balance sheet?

The current earnings reported on a company's balance sheet describes the earnings of the current year. This does not include the interest and taxes associated with the earnings.

Real estate appraisers sre experts at?

Real Estate Appraisers provide real estate appraisals, property valuations or land valuations. This is the practice of developing an opinion of the value of real property, usually its market value.

What affect does earnings per share have on price earnings ratio?

the price earnings ratio is simply earnings-per-share divided by the share price. OOPS! I got that upside down! It is the share price divided by the earnings per share. The earnings figure might be for the trailing twelve months (ttm) or earnings estimated for the next four quarters.

Are actual earnings the same as net earnings?


Are Gross Earnings same as insurable earnings?


What are the reasons for not using retained earnings when starting a new business?

A new business has no retained earnings. Retained earnings are prior years earnings that have not been distributed to the shareholders... if it is a brand new business there is no possible way to have retained earnings at inception date.

Why does Earnings Per Share is used for decision making purpose instead of Cash Earnings Per Share?

what is the earnings for a vet

What is the price-earning relationship?

The Price-to Earnings Ratio or P/E-Ratio is a maesure for the valuation of a stock or a bond. The price of a stock is divided by the earnings per share (net profit divided by the number of shares outstanding). The PE-Ratio of Bonds is the reziprocal value of the bonds' yield, which depends on paymants and on the current price of the bond.The lower the PE Ratio is the cheaper is the stock regarded as. Valuations depend on the industy, the earnings growth and other fundamental or technical influences, like rumors or aquisitions. Stocks that are more "popular" than others tend to be valuated higher than other stocks. It is also important to know whether the expected earnings turn out to be realistic or may be too high. Therefore it is much more reasonable to work with the companies' real earnings of the last year. Except of the PE-Ration there are a lot of other factors to be considered before finally investing your money in any stock or bond like earnings stability, growth and the companies' debt.

Is unappropriated retained earnings credit?

Yes, since this account (Retained Earnings) is a credit account and an uppropriate retained earnings account is simply a non-restricted account which is Retained Earnings !!! Even the restricted/ appropriate retained earnings are credited.

How do you calculate projected earnings?

Projected earnings are impossible to calculate

What is Kobe Bryant yearly earnings?

His yearly earnings are about $19,800,000.

How do dividends and earnings and profits relate?

Dividends, profit and earnings are related as if there is increase in earnings then there is possibly increase in profit as well as increase in dividend amount.

Do private companies disclose earnings?

no they are not bound to disclose there earnings. its optional

How many earnings do vets earn?

how many earnings do vets earn?

As an investor are basic or diluted earnings per share more important?

Diluted earnings per share Diluted earnings per share

What does accumulated earnings mean?

The definition of accumulated earnings is the sum of the profits of a company after dividend payments since the inception of the company. Accumulated earnings are also called earned surplus, retained earnings, or retained capital.

Where can one find an accurate car value calculator?

Car value calculators quality can vary on the type of vehicle you are looking to value. Parkers often provide good valuations for all vehicles. However, Wisebuyers provides the best valuations for vehicles if you are aware of the current mileage.

What does retained earnings represent?

Retained earnings are a businesses earnings that have not been paid out as dividends. These are usually retained to pay off debt that the business owes.

What is a closed revenue and expense account to retained earnings called?

When you close the accounts, it totals into retained earnings, so in turn, it is essentially retained earnings.

What is the normal balance of retained earnings?

normal balance of retained earnings: credit.