Conscious Investor Knowledge Base

When should I change the earnings per share in the Scenario Analysis?

In the Scenario Analysis, Conscious Investor automatically enters the Earnings per Share EPS for the past twelve months. This is called EPSttm: earnings per share trailing twelve months. In the USA and Canada, this means adding the quarterly EPS for the most recent four quarters. In Australia, it is the two most recent semi-annual figures. This number forms the base level for the forecasts of the growth of EPS.

You may want to adjust the EPSttm manually if you believe that the figure is not typical or representative of current trends. Perhaps there has been a spike upwards, which you think is a one-off. In this case, you could enter a lower figure.




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Last Updated
30th o June, 2008

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