Q & ACategory: StocksCalculating RPS, EPS and DPS
PCLim asked 2 years ago

Hi, when calculating RPS, EPS and DPS growth over 10 year assessment, do you normalized it to current number of shares?

1 Answers
KCLau Staff answered 2 years ago

In order to make apple-to-apple comparison, you do need to do adjustment whenever there is stock splits, bonus issues, etc.
That’s issue with looking at “per share” basis.
To save the trouble, you can also look at the company as a “whole”, rather than per share basis.