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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?

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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.


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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?

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

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Are actual earnings the same as net earnings?

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Are Gross Earnings same as insurable earnings?

yes


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.


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What is the price-earning relationship?

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