OPEN-SOURCE SCRIPT

EPS Grid

已更新
Introduction:
This simple indicator offers insights into the relationship between stock prices and earnings, aiding in the assessment of valuation dynamics during different periods.

Understanding Price-to-Earnings (P/E) Ratio:
The commonly used Price to Earnings (P/E) ratio, calculated as Current Price divided by Earnings Per Share (EPS) over the trailing 12 months (TTM), serves as a fundamental metric. Here, we use this formula to estimate a stock's price. For instance, multiplying EPS by 10 provides an approximation of the stock price with a P/E ratio of 10.

The Grid Concept:
Utilizing this principle, a visual grid is constructed to illustrate how stock prices correlate with earnings. This grid facilitates the identification of both potential bargains and overvalued stocks.

How to Utilize:
This indicator is pre-configured with earnings multiples of 10, 15, 20, and 25. Simply add it to your chart and observe whether earnings demonstrate consistent growth. If prices lag behind earnings, a potential catch-up phase may ensue in the future.

Happy Investing!
Embark on your investment journey armed with this indicator, and may it guide you towards informed decisions and successful ventures.
發布通知
We have enhanced the overlay setting to streamline your experience. Now, you won't need to manually adjust settings. The EPS grid will seamlessly integrate directly onto your price chart, providing you with a more intuitive and efficient trading environment.

Happy trading!
發布通知
Updated the EPS multiples to accurately reflect important levels. Example: If a stock has an EPS of 8 USD, then it will make 80 USD in 10 years, i.e. EPS * 10. But the EPS grows by 10% every year, then the 10 year returns per share would be EPS×(1+1.1+1.1^2+⋯+1.1^9) i.e. EPS * 15.9. Like this the indicator is updated to consider an EPS growth rate of 20%, 30%, 40% and 50%.

feel free to customize according to how stock price is trending historically. Happy Investing :)
Bands and ChannelsEPSinvestingresistencesupportSupport and Resistanceundervaluedvaluation

開源腳本

在真正的TradingView精神中,這個腳本的作者以開源的方式發佈,這樣交易員可以理解和驗證它。請向作者致敬!您可以免費使用它,但在出版物中再次使用這段程式碼將受到網站規則的約束。 您可以收藏它以在圖表上使用。

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