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Calculation

This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.

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June 7, 2018 at 5:00 am #457338
Albert
Member
- Topics: 5
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Is eps+dps equal to total shareholders return??
June 7, 2018 at 6:55 am #457385
John Moffat
Keymaster
- Topics: 57
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No. That would make no sense at all!
The dividend is paid out of the earnings – adding them together would mean absolutely nothing.
June 7, 2018 at 9:04 am #457406
Albert
Member
- Topics: 5
- Replies: 9
Or can I say that (earning + dividend) = retained earning
Retained earning = value of the company??
June 7, 2018 at 4:51 pm #457555
John Moffat
Keymaster
- Topics: 57
- Replies: 54790
Neither of your statements are true!!!
Earnings minus dividends = retained earnings. This is basic financial accounts 🙂
The value of the company is certainly not the retained earnings. It is the PV of the free cash flows discounted at the WACC.
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