Quote Originally Posted by Sumant View Post
What are following points related to shares? How they are useful in picking up/investing in new shares?
P/E Ratio
PE ratio is Price/EPS i.e. the current stock price divided by the EPS.
EPS
EPS is Earnings per share. The total earnings of the company divided by the numbers of shares in equity.
Market cap is price multiplied by the number of equity shares.
Face Value
As above 3 depend on the earnings of the company either directly or indirectly, they vary from quarter to quarter. But, face value is not a variable, unless a split happens. Face value is the nominal price printed on the face of the stock. It does not mean much by itself, nor is it the assured value of the stock as some people mistake it to be.