REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
|
|
 |
Use
of ‘normalised EPS’
In order to ensure that
a reasonably realistic measure of growth is achieved, it is essential that comparison
should only be made between EPS figures calculated on the same basis. This is
particularly important when comparing historic EPS for consecutive periods, or
when comparing the last reported EPS alongside a forecast for the following period.
To ensure comparability, any
historic EPS figures used for measuring growth are adjusted for share capital
changes and non-standard periods, and are calculated on a normalised basis, which
excludes all non-trading or exceptional profits and losses. The full methodology
for calculating normalised EPS is described in calculating
normalised and IIMR earnings.
|
|
|
