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VOL. 6, ISSUE 3 (2024)
EPS Growth of Sensex 30 Companies
Authors
Ravinder Kumar Bhatia
Abstract
Company Valuation methods are broadly
classified into Relative Valuation Methods and Absolute Valuation Methods.
Relative valuation methods compare the variables of the company with other
similar companies. Absolute valuation methods used company own variables,
dividends and cash flow to identify the true value of the company. Current
market price of any stock is the multiplication of price earnings ratio and
earnings per share. Changes in EPS and PE Ratio increases and decreases the
market price of any stock. But there are other factors also affect the
performance of the company such as business cycle, interest rates, inflation,
growth rate, ROIIC, tax rates, equity risk premium, cyclical fluctuations and
bull and bear trends in the national and international economies. In this
research paper two variables, EPS Growth Rate and PE Growth has been taken from
2019 to 2024. Sensex 30 companies have been taken as a sample to establish the
relationship between the variables. Correlation between Earnings Growth and PE
Growth has been tested through Pearson’s Correlation.
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Pages:49-52
How to cite this article:
Ravinder Kumar Bhatia "EPS Growth of Sensex 30 Companies". International Journal of Commerce and Economics, Vol 6, Issue 3, 2024, Pages 49-52
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