The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the Capital One Financial Corporation (NYSE:COF) share price is up 64% in the last five years, that’s less than the market return. Zooming in, the stock is up a respectable 14% in the last year.
After a strong gain in the past week, it’s worth seeing if longer term returns have been driven by improving fundamentals.
View our latest analysis for Capital One Financial
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).
During five years of share…
