RE: Marvin the paranoid android13 Feb 2022 12:44
I'd like to understand what you mean by earnings because I don't recognise it if it's not based on EBT. EBIT or EBITDA - see below:
Measures of Earnings
There are many measures and uses of earnings. Some analysts like to calculate earnings before taxes (EBT), also known as pre-tax income. Some analysts prefer to see earnings before interest and taxes (EBIT). Still, other analysts, mainly in industries with a high level of fixed assets, prefer to see earnings before interest, taxes, depreciation, and amortization, also known as EBITDA.
All three figures provide varying degrees of measuring profitability.
Earnings per Share
Earnings per share (EPS) is a commonly cited ratio used to show the company's profitability on a per-share basis. It is calculated by dividing the company's total earnings by the number of shares outstanding.
Price-to-Earnings
Earnings are also used to determine a key indicator known as the price-to-earnings (P/E) ratio.
The price-to-earnings ratio, calculated as share price divided by earnings per share, is used by investors and analysts to compare the relative values of companies in the same industry or sector.
On this basis using EBITDA is the most generous.... LVCG won't have any ENT as they have depreciated and amortised Bricklive investment and pay some interest on debt.
On an EBITDA of £1.6M, the earnings per share would be 1p and at a P/E of 10 that would mean 10p a share.