How to determine Cash EPS
I don't know if this is the right place to put this problem. I couldn't find any threads that discuss finance problems and concepts as such. Please take the effort to answer the following question
I am trying to determine value of companys shares using the Earnings Per Share (P/E) I dont understand what EPS to consider while arriving at the fair price of the share. Is it headline EPS, adjusted EPS, pro-forma EPS or any other EPS.
Adding to this problem is that I dont understand how to determine the OCF per EPS firm the balance sheet of the company because the formats are so different.
The formulae for OCF is PBIT - Taxes + Dep
Now, the problem is that PBIT is never directly given. There are several items like non recurring income etc to be adjusted. How do I make the necessary adjustments.
Besides, how do I verify the Cash EPS that I have determined?
Can anyone answer these querries with an example from a real PL statement.
Thanks in advance.
Vipin
