Saturday, December 27, 2014

BASICS FOR BEGINNERS ....

DIFFERENCE BETWEEN EPS,DILUTED EPS AND CASH EPS 

Courtesy : Investopedia

Basic Earnings Per Share ( EPS)

A rough measurement of the amount of a company's profit that can be allocated to one share of its stock. Basic earnings per share (EPS) do not factor in the dilutive effects on convertible securities. Basic EPS is calculated as follows:
Basic EPS = (net income – preferred dividends) / weighted average number of common shares outstanding
If a company has a simple capital structure, meaning that it has not issued any potential dilutive securities, basic EPS can be a useful metric on its own.


Diluted EPS

Diluted Earnings Per Share (diluted EPS) is a company's earnings per share (EPS) calculated using fully diluted shares outstanding (i.e. including the impact of stock option grants and convertible bonds)


Cash EPS

 Cash EPS is operating cash flow (not EBITDA) divided by diluted shares outstanding. Generally, cash EPS is more important than other EPS numbers, because it is a "purer" number. Cash EPS is better because operating cash flow cannot be manipulated as easily as net income and represents real cash earned, calculated by including changes in key asset categories, such as receivables and inventories. For example, a company with reported EPS of 50 cents and cash EPS of $1 is preferable to a firm with reported EPS of $1 and cash EPS of 50 cents. Although there are many factors to consider in evaluating these two hypothetical stocks, the company with cash is generally in better financial shape.

112 comments :

  1. Nice learning lesson distinguishing Eps and cash Eps. Thank you V.P. sir

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  2. Sir, but we can find eps when we search for a stock, where can we find cash eps and diluted eps?

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    Replies
    1. It is even available in BSE website .Click on the word 'Detailed' at the bottom of result filing.

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  3. Dear sir,have been following GRANULES INDIA since your earliest blog.I would like to know your latest view on it
    Thanks ,with regards

    ReplyDelete
    Replies
    1. Recommended below Rs.80 . At CMP Rs.800 one can still hold.

      Delete
  4. Replies
    1. Poly medicure recommended @ Rs.65 ( Adj to bonus) .At CMP above Rs.900 , neutral on it

      Delete
  5. Sir please your view upon Ashoka Buildcon thanks sir please reply

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  6. Hi VP Sir,

    Your views on Auro Pharma please. I am holding small quantity @ 158. I am long term investor.

    Thanks,
    Naveen

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  7. sir your views on deccan gold and sun pharma advanced research company thanks

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  8. sir i am holding aimco pesticides 3000@RS 86/- please tell u r current opinion hold or exit

    ReplyDelete
    Replies
    1. Fundamentally what negative factors you realised after the purchase of this stock @ 86 , to think about exiting from it below your purchase price ?

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    2. Possibly the rate going down may have made sree think on exiting at lower rate I think..

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  9. Dear sir,
    Please tell your views on sharon bio medicine... Available at a PE of 3.8 only.

    ReplyDelete
    Replies
    1. Prashant, please understand that just because PE is low, it does not mean the stock is good. Many of the worthless stocks have very low PE because nobody would touch them.

      Delete
  10. Hi VP,

    Please share your views on Pondy oxides.

    Thanks,

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  11. sir, if i want to calculate consolisated eps at this point for a company like arrow coated..then wat to do?? if i want to know that a share is overpriced at this point?

    ReplyDelete
    Replies
    1. All companies having subsidiaries will declare consolidated result at year end.

      Delete
  12. Prime property development corporation (PPDCL)

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  13. Sir please give ur valuable view about mangalam drug~Rs.20 and virinchi tech~Rs.35. Is it buy according to you ?

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  14. Sir your views on Sml Isuzu and Mahendra CIE.?

    ReplyDelete
    Replies
    1. SML is an already recommended stock @ Rs.335

      Not tracking Mahindra CIE

      Delete
  15. Sir,
    Kindly share your views on Wall street Finance and Confidence Petroleum... Regards

    ReplyDelete
  16. Hello Sir, can you please share your views on Intellect Arena (subsidiary of Polaris). Thanks

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  17. Whats your current views on Dion Global - its still wait and watch till next few quarters?

    ReplyDelete
    Replies
    1. If someone is not ready to hold for long term , no meaning in looking into turn around cases . Few quarters may not enough to see the possible turn around.

      Delete
  18. Sir ur views on Kwality Ltd. & JVL Agro Industries Ltd.

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  19. Sir, May I know your current view on your old recommendation Technofab Engineering?

    ReplyDelete
    Replies
    1. I hope , this stock will perform once the sector rebounds

      Delete
  20. Dear Sir,

    Is Arrow Textile a group company of Arrow Coated Products?.

    Please reply.

    Regards,
    Imran

    ReplyDelete
    Replies
    1. Similarity is only in name . No relation between these two promoters.

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    2. Thank you for your quick responce... It meas a lot for me :)

      Delete
  21. Sir your views about radico khaitan

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  22. Hi VP Sir,
    Thanks for your updates. Can you please provide your view on Godavari Drugs if possible?

    ReplyDelete
    Replies
    1. Already suggested to keep it in your radar

      Delete
  23. Sir, your views on JBM Auto and Avanti Feeds

    ReplyDelete
    Replies
    1. Not tracking JBM

      Avanti Suggested earlier around Rs.75 which is currently trading @ Rs.1600 , I prefer to take out some profit

      Delete
  24. Sir,

    Your views on daikaffil Chemicals??

    Valuation and fundamentals look quite interesting

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  25. Hello Sir whats your view on KDDL? Thanks Much

    ReplyDelete
  26. Dear valupick,
    I know you have recommended panacea biotec . promoter selling share. Can u share any view current market price ? I m holding around this level only (for 2year) still can we add? Thanks

    ReplyDelete
    Replies
    1. On the other hand they are pumping more money into the company by subscribing shares on preferential basis, may be an effort to adjust funds.

      Delete
  27. Hello Vp,

    Is MIC still a buy?

    Thank You

    ReplyDelete
    Replies
    1. Whatever I know about the company and my opinion already shared with you . Practically impossible to comment about every stock at each price point if there is no other significant developments in it . Study the company by yourself and take decision based on each one's risk profile.

      Delete
  28. Hi Sir
    what is your view on Pressman Advt & Vidhi Dyestuffs

    ReplyDelete
  29. Sir, pls opine about BPL and Mirc Electronics.

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  30. Sir please focus on chembond can I buy at cmp

    ReplyDelete
    Replies
    1. Already recommended @ Rs.190

      http://value-picks.blogspot.in/2010/12/chembond-chemicals-ltd-buy.html

      Delete
  31. Dear sir what is your opinion about SMARTLINK?

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  32. Hello VP.....Your view about Rei Argo ....

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  33. Sir your Views on Rolta India at Current Levels... Everything Looks Good But the valuation is low priced

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  34. Dear VP sir..I had a query with respect to delisting and how it impacts the business..I was reading this news on "BK Modi Group to make voluntary delisting offer for Spice Mobility"..but fail to understand as to why the stock is hitting upper circuit..Why is delisting news good for any business in general??

    ReplyDelete
    Replies
    1. There is nothing special with de-listing and business .Investor's expecting higher exit price.

      Delete
  35. Dear sir..Is Avanti feeds a bad buy now? I read news which says Thailand is in bad shape because of WSS and EMS disease..Vietnam is getting into Antibiotic problem..Shrimp prices have fallen by 100-150 Rs..Japan currecy has is loosing value making reducing their affordability to consume shrimps...I think there are too many factors now...I had bought it at at 600 and also saw that you are recommending to book some profits...I see that the business is a good one and the promoters and honest and still trying to grow further...

    ReplyDelete
    Replies
    1. This stock recommended around Rs.75 and suggested profit booking above Rs.1500

      Delete
  36. Sir, whats your view on KPIT? good numbers in last few years

    Thanks
    Ravi

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  37. Sir

    You view on PTC india purchased at Rs. 22, Monsanto India Purchased at Rs. 1980. long term view

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  38. sir, is there anything going wrong with hindustan tin works?

    ReplyDelete
    Replies
    1. Not aware of anything wrong in the business side

      Delete
  39. Hello and very very good evening sir. How are you sir? Even though its much difficult for me to know your name too? Although Name does not matter but the great work which you are doing is really matter. Thanks for guiding us. Sir i just find that in LAWRESHWAR POLYMERS promoter are constantly increasing their stack even though company business are also investor friendly, result are also better. Sir do you find any investment opprtunity in it. Thanks a lot SIR JEE. GOD BLESS YOU

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  40. Dear VP,

    Could you please let us know your views about Intrasoft Technologies?

    Regards,
    Ramesh

    ReplyDelete
  41. sir, your view on indian hume pipe ?

    ReplyDelete
  42. Sir,

    Please share your views on Suven Life Sciences.

    ReplyDelete
  43. Good morning VP sir, do you see any thing good happening in FUTURE CONSUMER stock. Can that be kept in our WATCH LIST. Can this be accumulated slowly? Kindly just give your views if you are tracking it.THANKS.

    ReplyDelete
  44. Plz share about united drilling... is it buy now..? Why they not posting results..

    ReplyDelete
    Replies
    1. Auditor resignation may be one reason

      Delete
  45. sir your view on igarshi motors ,thanks.

    ReplyDelete
    Replies
    1. Already suggested @ Rs.60 , Neutral at CMP Rs.285

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  46. Sir, Should I average polyplex at this level (212), My buying price is (255)

    ReplyDelete
    Replies
    1. Not aware about any negative post recommendation

      Delete
  47. Wish you and your family a very happy new year sir,
    this company called shilp gravures recently saw volume increase and scrip touched 52 week high, It is noted that promoters have increased their stake in the company slowly and steadily since a lot of quarters.

    I want to ask you about this stock also because it is the only listed player in industry and on taking information from the company it is noted that india's largest fmc companies like itc hul britannia nestle amul are among their 500+ clients.

    ReplyDelete
    Replies
    1. Business of all the mentioned FMCG cos grown in recent past . Any idea why there is no growth for this company in the same period ?

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    2. Sir because they did not add fresh clients that is why sales remain flat, Now they have started adding clients, As well as product pricing has started moving up.

      Delete
  48. Sir

    It is almost one month back you recommended a new stock.when we can expect the new one

    Amith

    ReplyDelete
  49. Dear VP sir
    wishing you and blog readers a very happy new year.
    It was observed the Kaveri seeds is getting down from its top value 1020 down to 750 levels.
    Could you please provide your valuable comments and future prospectus. Do you think any fundamental changes resulting this negative direction.

    looking for your comments

    regards

    ReplyDelete
  50. My dear vp sir,
    I m a small investor I started investing for about 2 years I made many losses in trading same day or in a week nut after looking to your blog I cover almost my losses I like ur recomendation of mic and gujarat borosil very much I m also holding 1 lack quantity of avance technologi @ 0.09 paise its trading around 0.20 paise now days I m a longterm investor and ask u to whether to hold sell or buy more please reply sir my email is (sandeepverma17060@gmail.com)

    ReplyDelete
    Replies
    1. Sir, Wish you and your family a very happy new year sir, Please check fundamentals of Shilchar Technologies, Promoters holding is 69.79%, Bodies Corporate 0.32%, Non residential individuals 14.77%, OCB 11.3%,individual share holding in excess of one lakh 0.74%, individual share holding share capital upto 1Lakh is 2.98% in this 2.98% public holding only 66000 shares are dematerialised that is 1.73% in the public( upto 1lakh share capital) Equity : 3.81Cr, F.V : Rs.10, Reserves 20.71Cr, Debt 20.82Cr, Regular Dividend paying, Sector is ELECTRIC EQUIPMENT, March'14 sales 100.43 Cr, eps 10.8, Sep'14 half year Sales 50.64Cr eps 9.89 website: shilchartechnologies, It is manufacturing Electronics & Telecom Transformeres, and Power & Distribution Transformers, promoters US based company is web: custommagneticsinc.
      --- K. Iftekhar

      Delete
  51. Wish you all a very very Happy New Year....

    Sir your view on
    Aarti Drugs and
    Atul Auto....

    Plz share your valuable opinion....

    Your valuable suggestions have already made our 2014 amazing and are sure it will make our 2015 wonderful......

    Thnx thnx thnx

    ReplyDelete
    Replies
    1. Not tracking Aarti Drugs

      Atul Auto already recommended at lower level

      Delete
  52. Wish you and your family very happy new year.

    ReplyDelete
  53. Dear sir,
    please give advise about lincoln pharma.

    ReplyDelete
  54. Please comment on Nitin Fire Protection industries limited. Company every year declared Dividend , Sales & income also improved good, Business is also coming under Tax free benefit(what is it exactly), Debt is also very low, what is market cap full and Market capital F.F, promoter golding 71% , FII & DII also holding, company hav bussiness in global also, so for 2 times Bonus declared, but at life time low,recently high volume with high delivery trade comment plz

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  55. sir view on Tokyo plast..can we buy at this lev

    ReplyDelete
  56. Sir,

    Your view on Talbros Auto .
    Looking good at current levels, considering only numbers , but want have your view on the same,
    If you are tracking this ,please clarify some points
    is there any negativity around this?,
    Quality of managment?
    Or any alternative to this ?

    Your comments will be appreciated ,
    Thanks in advance

    ReplyDelete

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