how to compare shares w.r.t. their EPS and P/E ratio?

Question

guys help me to find out the best share...i have data(EPS and P/E ratio) of a set of five shares. But I am unable to come to conclusion of picking one out of those five to invest for long term.I need to know how to rate these shares w.r.t. their EPS and P/E ratio.

Share EPS P/E ratio
South Indian Bank 2.21 10.41
Tata Steel 76.32 8.29
Vijaya Bank 13.85 6.43
NIIT tech 19.50 9.49
ICSA India 24.28 5.06

Answer 1

The EPS, and therefore the p/e, will have been calculated using different methodology. Firstly you have to equalise these figures by analysing the balance sheets/P&L and work out your own ratios.

Lets' say I have two cars. One does 30mpg and the other 45mpg. Which one would you buy to save petrol?

Firstly did I say they were both petrol? Has the consumption been measured on the same terms? The first one could be the mpg in town and the second one on motorways.

Answer 2

I think u r serious about the question. Let me share my little knowledge with u. EPS stands for earning per share. It is PAT of a company before payment of dividend (if any) divided by total number of outstanding shares. Higher the EPS healthier the company is. For example, a company has 1 crore shares & PAT in a particular year is 10 crores. Its EPS is Rs 10.00. P/E ratio is the ratio of price per share & EPS. In the above example if the price per share is Rs 100/-, then P/E would be 100:10 = 10. Here lower the ratio better. In the above example if the price per share is 10/-, ratio would be 1 which is far better than earlier case. Hope u learnt something from me.

Answer 3

EPS just gives you the earning per share whereas P/E gives the discount of earnings to price of the stock. PE are available for the different stocks and you can compare the price of shares of two companies by comparing their pe ratios lower pe means cheaper stock

Answer 4

I believe you want to compare companies financial ratios and other details of various companies before making investment decision. Askkuber provide ways to compare up to 5 companies with details.

Answer 5

If you want best share then become a big player in shares then every share will be best.