Tuesday, 25 October 2011

Are P/E Ratios and EPS Calculations Made Before Or After TIDA?

Are P/E Ratios and EPS Calculations Made Before Or After TIDA?

Do all these financial websites use earnings calculations from before Taxes, Interest, Debt, and Amortization or after.

Ans:
Why would Mohammed answer this question if he didn't know the answer? Just to mess with the asker?

EPS is always calculated using net income which is earnings AFTER TIDA. P/E ratios just use EPS so also AFTER.

Source(s):

Ph.D., CFA

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