E-Books →How to do Trading in Stock Market Step by Step Guide

Earnings Per Share (EPS)DefinitionEPS: A company's profit divided by the number of outstanding shares, indicating profitability.TypesBasic EPS: Calculated using the number of shares currently outstanding.Diluted EPS: Accounts for potential shares from stock options, convertible securities, and other sources.Price-to-Earnings Ratio (P/E Ratio)DefinitionP/E Ratio: A valuation metric calculated by dividing the stock price by the EPS. It measures how much investors are willing to pay per dollar of earnings.TypesTrailing P/E: Based on the past 12 months of earnings.Forward P/E: Based on projected earnings for the next 12 months.VolatilityDefinitionVolatility: The degree of variation in a stock's price over time, reflecting its risk.MeasuresHistorical Volatility: Based on past price movements.Implied Volatility: Based on market expectations of future price movements, often derived from options prices.