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Dividend Payout Ratio

Dividend payout ratio measures the percentage of a company's earnings per share that are paid to shareholders as dividends . It determines what portion of earnings has been retained in the business.

Dividend Payout Ratio (%)
= ( Cash Dividend per Share / Earnings per Share ) x 100

Cash Dividend per Share =
Earnings per Share =
Dividend Payout Ratio =  ( % )
Earnings Per Share (EPS)

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock.  EPS is calculated as net income (the profit a company makes after paying all expenses and taxes) divided by the number of shares outstanding (total number of shares that a company has) during the same period. If the number of shares out in the market has changed during that period, a weighted average of the quantity of shares is used.

EPS is just one of the metrics to determine a company's profitability. It is also a major component of another important metric, price per earnings ratio (P/E).

Earnings Per Share (php)
= Net Income / No. of Shares Outstanding

Net Income =
No. of Shares Outstanding =
Earnings Per Share =
Price Earnings Ratio (P/E)

Price Earnings Ratio (P/E) is one of the oldest and most frequently used metrics to determine the value of a company's stock. To calculate the P/E, simply divide the company's current share price by its earnings per share (EPS).

In general, a higher P/E ratio suggests that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E. It is usually more useful to compare the P/E ratios of one company to other companies in the same industry, to the market in general or against the company's own historical P/E.

Price Earnings Ratio (php)
= Price per Share / Earnings per Share

Price per Share =
Earnings per Share =
Price Earnings Ratio =

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