Per share figures seek to determine the amount of a
line on the financial statements on a per share basis. This is
useful for tracking these items across time – but more importantly
in market ratios. For instance the P/E ratio which is price divided
by EPS or NPAT per share, which gives an indication of how the
market values the companies earnings – the reciprocal of this, the
earnings yield similarly shows what sort of return you get at that
share price. Another key one is DPS (dividends per share) as this
can be used to determine the dividend yield. Also net assets can be
used to get P/NA to see how the market is valuing the net assets of
the firm.
Dividend/shares
=Dividends paid (from statement of cash flows) over
number of shares (from notes to financial statements).
NPAT/shares (EPS)
=NPAT (Net Profit After Tax – see the statement of
financial performance; this is the “bottom line”)
divided by over number of shares (from notes to financial
statements).
EBITDA/shares
=EBITDA (Earnings Before Interest, Tax, Depreciation, &
Amortisation – see the statement of financial performance;
this figure is commonly used to assess the underlying
profitability of the firm, ignoring effects of capital
structure, this is commonly used in valuations and is thrown
around a lot in private equity discussions e.g. “EBITDA
multiple”) divided by over number of shares (from notes
to financial statements).
Net Assets/shares
=Net assets (total assets less total liabilities i.e. equity –
see the statement of financial position) divided by over number
of shares (from notes to financial statements).
