Learn how to calculate earnings per share (EPS) and why it is an important gauge in determining a stock’s value and the profitability of a company.

This formula calculates the standard deviation ... results that are significantly above or below average. In reality, stock prices and index values can have asymmetrical distributions.

Learn about our editorial policies The price-to-earnings ratio (P/E) is one of the most widely used metrics for investors and analysts to determine stock valuation. It shows whether a company’s ...