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.

1 Answer 1


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.

  • 1
    Your derivation for ROE is incorrect. Shareholders' Equity ≠ Share Price * No. of Shares.
    – Alper
    Jan 12 at 20:35
  • @Alper, so what is the correct return on equity derivation?
    – Alex_P
    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.
    – Alper
    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
    – D Stanley
    Jan 12 at 21:50

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