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QuestionsCategory: Valuation QuadrantAlphabet EPS for “How to plot a P/E chart”
Yuan Liang Wong asked 5 months ago

Hi,
May I know how to get the EPS 19.46 that was used on the “How to plot a P/E chart”?
The current Alphabet EPS showed on Yahoo finance is 75.04. Should I used that latest EPS value for the P/E chart?

7 Answers
Victor Chng answered 5 months ago

Hi Yuan Liang,
 
May I know where did you get the EPS of 19.46?
 
The TTM EPS on yahoo finance include exceptional item. You have to remove it from the EPS. Hence, the figure should be lower.

Yuan Liang Wong answered 5 months ago

In the “How to” video, you used 19.46 for EPS.
May I know how to get the 19.46?
And why used the same EPS 19.46 to calculate the 5 years of P/E?
 

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Victor Chng answered 5 months ago

Hi Yuan Liang,
 
Referring to the screen shot, the year on the left stated 2015 which mean 19.46 is 2014 EPS.

Adeline Ling answered 1 month ago

Hi All, I’m also wondering how to get the EPS value of 19.46 in the video example. Is it obtained after working out the excel spreadsheet?
Thanks.

Victor Chng replied 1 month ago

Hi Adeline,

The EPS is based on 2014 figure not the latest

Sun Down answered 4 weeks ago

Hi Victor, I also cannot get the EPS of 19.46 as mentioned in the video. I looked at the annual report for the year ended 2014, the basic EPS is 21.37 and the diluted EPS is 21.02. And even exclude the discontinued operations, the EPS is 20.61 and 20.27 respectively.
Alphabet 2014 earnings
So wonder how to get that 19.46 too.

Victor Chng answered 4 weeks ago

Hi Sun Down,

Please refer to the AR2015 report. Then go to page 49 of the annual report to see the income statement.

Under 2014, the Net income available to all stockholders is $14,136m

The exception items are 763m which is under other income. Hence the net income after exceptional item is $14,136m – 763m = $13,373m

For diluted number of shares go to page 87. It is the sum of Class A (342.377m) and Class C (344.693m) shares. The total is 687.07m

EPS = $13,373m / 687.07m = $19.46.

Hope this helps

Sun Down replied 4 weeks ago

That helps a lot, thanks Victor!

Victor Chng answered 4 weeks ago

Welcome Sun Down :)