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Re: Wise Man post# 793133

Thursday, 05/02/2024 8:25:54 AM

Thursday, May 02, 2024 8:25:54 AM

Post# of 797764

A Common Stock represents a legal claim on all the future EPS


Which is either distrbuted as dividend to common shares or kept by the company as Accumulated Retained Earnings account.
This is why this account is included as an item to calculate the Common Equity.

And this is why the stock valuation is calculated at X times the EPS, without analyzing what portion will be paid out or kept by the company.
What's 14 times $0.00 EPS?