Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Kaisa Prosperity Holdings Limited (HKG:2168) share price has soared 208% return in just a single year. On top of that, the share price is up 43% in about a quarter. We'll need to follow Kaisa Prosperity Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

View our latest analysis for Kaisa Prosperity Holdings

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year Kaisa Prosperity Holdings grew its earnings per share (EPS) by 100%. The share price gain of 208% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We know that Kaisa Prosperity Holdings has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Kaisa Prosperity Holdings the TSR over the last year was 213%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's nice to see that Kaisa Prosperity Holdings shareholders have gained 213% over the last year , including dividends . And the share price momentum remains respectable, with a gain of 43% in the last three months. This suggests the company is continuing to win over new investors. Is Kaisa Prosperity Holdings cheap compared to other companies? These 3 valuation measures might help you decide.

Of course Kaisa Prosperity Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.