Here's the theory behind the formula: When a call optionon a stock expires, its value is either zero (if the stock price is less than the exercise price) or the difference between the stock price ...

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.

Limitations to the P/E Ratio The first part of the P/E equation or price is straightforward because the current market price of a stock is easily obtained, but determining an appropriate earnings ...

Stock prices are initially set by IPOs and are influenced by supply and demand dynamics in the market. Long-term stock prices reflect the business's earning power, adhering to Buffett's valuation ...

Dividend yield is the percentage of a stock's market price that is paid out per share annually in dividends. Dividend yield is the percentage of a company’s current stock price that it pays to ...