| trailingPEbasicEPS {stockAnalyst} | R Documentation |
Calculates trailing Price to Earnings Multiple based on basic Earnings Per Share (EPS).
Description
In the first edition of Security Analysis (by Graham and Dodd, 1934, as cited in Jerald E. Pinto, 2020), Benjamin Graham and David L. Dodd described common stock valuation based on PEs as the standard method of that era, and the PE is still the most familiar valuation measure today. Two chief variations of the PE: the trailing PE and the forward PE (also called the leading PE) are available. A trailing PE (sometimes referred to as a current PE) is its current market price divided by the most recent four quarters EPS. In such calculations, EPS is sometimes referred to as trailing 12 month (TTM) EPS. Companies are themselves required to present both basic EPS and diluted EPS. Basic earnings per share data reflect total earnings divided by the weighted average number of shares actually outstanding during the period. (Jerald E. Pinto, 2020). In this method, trailing PE on basic Earnings Per Share (EPS) is being computed (Jerald E. Pinto, 2020).
Usage
trailingPEbasicEPS(currentShPr, basicEPS)
Arguments
currentShPr |
number. |
basicEPS |
vector. |
Details
According to information provided by Jerald E. Pinto (2020), the method trailingPEbasicEPS is developed for computing trailing Price to Earnings Multiple based on basic EPS for the values passed to its two arguments. Here, currentShPr is current Share Price and basicEPS is basic EPS as defined in the description above.
Value
Input values to two arguments currentShPr and basicEPS.
Author(s)
MaheshP Kumar, maheshparamjitkumar@gmail.com
References
Pinto, J. E. (2020). Equity Asset Valuation (4th ed.). Wiley Professional Development (P&T). https://bookshelf.vitalsource.com/books/9781119628194
Examples
trailingPEbasicEPS(currentShPr=596.5,basicEPS=15.1)