{ "cells": [ { "cell_type": "markdown", "metadata": {}, "source": [ "## Equations" ] }, { "cell_type": "markdown", "metadata": {}, "source": [ "### EPS\n", "$\n", "\\begin{align}\n", "\\textit{Earnings Per Share} & = \\frac{\\textit{Earnings}}{\\textit{Market Value Per Share}} \\\\\n", "\\textit{EPS} & = \\frac{\\textit{Earnings}}{\\textit{Share Price}}\n", "\\end{align}\n", "$" ] }, { "cell_type": "markdown", "metadata": {}, "source": [ "### P/E Ratio\n", "$\n", "\\begin{align}\n", "\\textit{Price/Earnings Ratio} & = \\frac{\\textit{Market Value Per Share}}{\\textit{Earnings Per Share}} \\\\\n", "\\textit{P/E} & = \\frac{\\textit{Share Price}}{\\textit{EPS}}\n", "\\end{align}\n", "$" ] }, { "cell_type": "markdown", "metadata": {}, "source": [ "IPO parameters:\n", "- `n_shares` $ \\text{number of shares} $\n", "- `price` $ \\text{price per share} $" ] }, { "cell_type": "code", "execution_count": 58, "metadata": {}, "outputs": [ { "data": { "text/html": [ "
\n", " | mktcap | \n", "n_shares | \n", "price | \n", "earnings | \n", "eps | \n", "pe | \n", "
---|---|---|---|---|---|---|
0 | \n", "10000000.0 | \n", "10000000.0 | \n", "1.0 | \n", "1000000.0 | \n", "0.100000 | \n", "10.000000 | \n", "
1 | \n", "10000000.0 | \n", "266666.0 | \n", "37.5 | \n", "1000000.0 | \n", "3.750009 | \n", "9.999975 | \n", "
2 | \n", "10000000.0 | \n", "100000.0 | \n", "100.0 | \n", "1000000.0 | \n", "10.000000 | \n", "10.000000 | \n", "
3 | \n", "10000000.0 | \n", "10000.0 | \n", "1000.0 | \n", "1000000.0 | \n", "100.000000 | \n", "10.000000 | \n", "