# Are 'EPS (TTM)' and 'returnonequity' the same?

I am using Yahoo finance and am interested in the `EPS (TTM)` value of a company. I use the REST API option of Yahoo finance and found `get-statistics` v3. This API returns a property `returnonequity` which appears to be at least closely related.

Yes, they are related. EPS (TTM) is the Trailing Twelve Month's Earnings Per Share, or

``````EPS(TTM) = Tot Net Income (TTM)
--------------------
Avg # Of Shares (TTM)
``````

While Return on Equity (TTM) is net income divided by share price, or

``````ROE(TTM) =      Tot Net Income (TTM)
-----------------------------
Avg Shareholder's Equity(TTM)

~=                     Tot Net Income (TTM)
--------------------------------------------------------
Equity Book Value per Share (TTM) * Avg # Of Shares(TTM)

=             EPS (TTM)
---------------------------------
Equity Book Value per Share (TTM)
``````

The second equality may not be exact if the number of shares changes drastically (the average of a ratio is not the same as the ratio of the averages) but if there are no significant changes in the # of shares the equality will hold.

• Your derivation for ROE is incorrect. Shareholders' Equity ≠ Share Price * No. of Shares. Jan 12 at 20:35
• @Alper, so what is the correct return on equity derivation? Jan 12 at 20:55
• @Alex_P If one wants to have EPS in the numerator in calculating the ROE, the `Shareholders' Equity = BPS * No. of Shares` formula, where BPS is the Book Value Per Share, can be used. I have now also noticed that the relevant part of the derivation has the "~" (approximately) sign but that is not a good approximation at all because the market capitalization of a company's stock is frequently quite different than its shareholders' equity. Jan 12 at 21:28
• @Alper Of course, you're right - I plead temporary insanity :) I have updated it to reflect book value and not market value Jan 12 at 21:50