Figure 1 above summarizes the investor's performance in the company Sport Direct. The company has been able to earn a healthy EPS of 15.73 in the FY 2010. However, the performance of EPS declined in the year 2011. It came down to 14.8. The result of this decline in performance is because the company the company's efficiency has decreased in terms of cost of making goods. Increase in taxes is another reason why the company's performance in terms of EPS. P/E is also another very important measure to assess the company's shares in terms of their earning potential. In the case of Sports Direct, 2010 P/E ratio could not be calculated because the historical market price was not available in the financial statements.
In 2011, the company was able to earn the P/E ratio of 19.5. This means that investors are needed to invest €19.5 in the company for every €1 of earning. The ratio is quite high and looking at this measure it looks like that the stock is trading at a very high price and therefore investors should only invest in the shares of the company once the price of the stock comes down.
[...] Therefore, JJB Sports is out of question, and only place where the investment should come is Sports Direct. References JJB Investor Relations (2012) [online] Available at: http://www.jjbcorporate.co.uk/pdf/reports/2011%20Annual%20Report.pdf. Lse.co.uk (2011) Jjb Sports Share Price. JJB - Stock Quote, Charts, Trade History, Share Chat, Financial Terms Glossary.Jjb Sports Plc Ord 1P. [online] Available at: http://www.lse.co.uk/shareprice.asp?shareprice=jjb [Accessed: 1 Apr 2012]. Sports Direct Corporate Accounts (2012) [online] Available at: http://media.sportsdirectplc.com/App_Media/SportsDirect/pdfs/2011_Annual_Rep ort.pdf. Uk.finance.yahoo.com (2012) SPORTS DIRECT Share Price | SPD.L- Yahoo! UK & Ireland Finance. [online] Available at: http://uk.finance.yahoo.com/q?s=SPD.L [Accessed: 1 Apr 2012]. [...]
[...] Investment analysis: Sports direct vs. JJB sports Sports Direct Investor Ratios for the FY 2010, 2011: Figure 1: Sports Direct Investors Ratios: Figure 1 above summarizes the investor's performance in the company Sport Direct. The company has been able to earn a healthy EPS of 15.73 in the FY 2010. However, the performance of EPS declined in the year 2011. It came down to 14.8. The result of this decline in performance is because the company the company's efficiency has decreased in terms of cost of making goods. [...]
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