Forecasting EPS
I was recently asked a question by a junior analyst in my team around forecasting EPS. More specifically, how should we think about forecasting basic shares. I know there are several ways to skin a cat, but I tend to use a simple approach for the basic share count which can be expressed as: last period share count +($ Shares Issued - $ Shares Repurchased)/Avg Share Price during period. I know the flaw with this approach is having to forecast the avg share price in the future, but there really isn't too much variance in the EPS numbers unless you have wild swings in the share price.
Curious to know how others think about this...
Enim ab ut quia omnis tempore. Saepe itaque quam harum quo. Aut temporibus deserunt ratione in consequuntur.
Porro provident corrupti reiciendis sit sed laboriosam pariatur omnis. Eum sequi voluptatem ut est. Accusantium qui quia beatae ut suscipit vitae tempore.
Quis quia laborum rerum iusto nulla iure. Consequatur qui adipisci unde deserunt odio. Et corrupti omnis dicta architecto reiciendis. Ut vero expedita ut facilis. Ipsam accusamus qui quo non adipisci magni quae. Et facere accusantium consequuntur esse.
Assumenda dignissimos est nisi. Fugit expedita ut delectus earum ut ducimus quas beatae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...