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Presentation of low or negative EPS values

In order to fix the upper and lower extremes of the share price scale, the lowest EPS value is ignored. As a result, low EPS values may be rendered out of range, and no attempt is made to plot these within the graph.

When the EPS plot is required to join values lying within the graph with those which lie beyond the bottom range of the scale, the outlying values are notionally plotted against the same scale extended downwards, and the angle of inclination of the plot itself is thus established. For low EPS values which are positive, the steepness of inclination reflects the rate of decline or growth between values lying within and beyond the graph.

For EPS values which are negative, however, the angle of inclination is purely theoretical, and almost vertical, since the floor of a log scale is infinite and can only ever accommodate values greater than zero.


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