Ask Colin

EARNINGS PER SHARE

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1. The PE ratio is often said to be the number of times you pay for earnings. But you cannot spend earnings. Wouldn't price to dividend be better?
2. Instead of comparing the PE ratio to EPS growth to assess a growth company could I simply compare the PE ratio to EPS?
3. In what terms is EPS growth expressed?
4. Why does Ian Huntley say PE ratio and EPS growth should ideally be the same, when they rarely are?