How to Find the Profits of a Business

Wall Street focuses on that profit number it's called earnings per share or EPS. If Apple was trading at a PE of 100, then for every dollar of profit, you're paying $100 to buy Apple stock. Peter Lynch made a very good observation he said, if you were to chart a lot of different stocks and you were to look at their earnings per share and their stock price,. It's messy, but you zoom out long enough and it matches up almost perfectly for almost every company.