trailingPEdilutedEPS {stockAnalyst}R Documentation

Calculates trailing Price to Earnings Multiple based on diluted Earnings Per Share (EPS).

Description

Companies are themselves required to present both basic EPS and diluted EPS. Diluted earnings per share reflects division by the number of shares that would be outstanding if holders of securities such as executive stock options, equity warrants, and convertible bonds exercised their options to obtain common stock. The diluted EPS measure also reflects the effect of such conversion on the numerator, earnings. Because companies present both EPS numbers, the analyst does not need to make the computation. Companies also typically report details of the EPS computation in a footnote to the financial statements (Jerald E. Pinto, 2020).

Usage

trailingPEdilutedEPS(currentShPr, dilutedEPS)

Arguments

currentShPr

number.

dilutedEPS

vector.

Details

According to information provided by Jerald E. Pinto (2020), the method trailingPEdilutedEPS is developed for computing trailing Price to Earnings Multiple based on diluted EPS for the values passed to its two arguments. Here, currentShPr is current Share Price and dilutedEPS is diluted EPS as defined in the description above.

Value

Input values to two arguments currentShPr and dilutedEPS.

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

trailingPEdilutedEPS(currentShPr=596.5,dilutedEPS=15.7)

[Package stockAnalyst version 1.0.1 Index]