A Growth Investor's Guide to Evaluating Earnings
by Paul Quinn
But how do you evaluate a firms earnings?
In this article
- Step 1: How Much Does the Company Earn?
- Step 2: How Does the Price Relate to Earnings?
- Step 3: How Does the Price Relate to Future EPS Growth?
- Step 4: How Does Revenue Relate to Earnings Growth?
- Step 5: How Well Has the Firm Used Reinvested Earnings?
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This article outlines the basics of evaluating earnings from the perspective of an investor who is seeking growth, but at a reasonable price. It provides a step-by-step approach for examining:
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