Finance for Non-Financial Professionals
Business Tools for Career Readiness
Finance for Non-Financial Professionals Module 3
with David Standen, D.B.A.
Earnings & Dividends •
Valuation ratios can be used by investors to estimate the value of a potential or existing investment
•
Investment valuation ratios simplify the evaluation process by comparing relevant data to help gain an estimate of value
Earnings & Dividends:
Earnings Per Share •
The portion of a company's profit allocated to each outstanding share of common stock
•
Indicator of a company's profitability Net Income – Dividends on Preferred Stock Average Outstanding Shares
Earnings & Dividends:
Dividends Per Share (DPS) •
Sum of declared dividends for every ordinary share issued
Dividends Per Share
=
Dividends – Special Dividends Number of Shares Outstanding
Earnings & Dividends:
Price-Earnings Ratio •
A valuation ratio of a company's current share price compared to its per-share earnings
P/E Ratio
=
Market Value Per Share Earnings Per Share
Finance for Non-Financial Professionals Module 3
with David Standen, D.B.A.
Earnings & Dividends •
Valuation ratios can be used by investors to estimate the value of a potential or existing investment
•
Investment valuation ratios simplify the evaluation process by comparing relevant data to help gain an estimate of value
Earnings & Dividends:
Earnings Per Share •
The portion of a company's profit allocated to each outstanding share of common stock
•
Indicator of a company's profitability Net Income – Dividends on Preferred Stock Average Outstanding Shares
Earnings & Dividends:
Dividends Per Share (DPS) •
Sum of declared dividends for every ordinary share issued
Dividends Per Share
=
Dividends – Special Dividends Number of Shares Outstanding
Earnings & Dividends:
Price-Earnings Ratio •
A valuation ratio of a company's current share price compared to its per-share earnings
P/E Ratio
=
Market Value Per Share Earnings Per Share
