EPS and P/E

Earnings Per Share (EPS) and Price-to-Earnings (P/E): What They Are and How to Read Them

This lesson explains how earnings per share (EPS) and the price-to-earnings (P/E) ratio are calculated, the difference between the trailing and forward versions, what "adjustment" means, and why in Iran's inflationary economy a low P/E does not always mean a cheap stock.