Question

	Apple	Google	Sirius XM	Pandora Media	Live Nation
Beta	1.02	1.51	0.79	2.02	1.52
EPS	10.36	23.56	$ 0.15	$ -2.30	$ -0.54
P/E	18.37	48.94	46.8	N/E	N/E
Dividend	2.92	N/A	0.04	N/A	N/A
Market Cap	935.6B	796.96B	31.08B	2.05B	10.36B

Is a possible gauge of the full amount earned on a stock investment the EPS times the number of shares purchased?

Answer 1

No, EPS*number of shares purchased is not a possible gauge of the full amount earned on a stock investment.

EPS = Profit after tax/Total no. of equity shares issued.

The reason why the metric (EPS*number of shares purchased ) is not a possible gauge of the full amount earned on a stock investment is that the impact of dividends are ignored. Investors earn dividend on stocks that they have purchased but EPS metric does not consider dividend earnings from a stock.