Earnings per Share - EPS

Earnings per Share - EPS

The portion of a company's profit allocated to each outstanding share of common stock. Calculated as:





Companies usually use a weighted average number of shares outstanding over the reporting term.

Notes:

This is the single most popular variable in dictating a share's price. EPS indicates the profitability of a company.

The diluted EPS means that the outstanding shares include any convertibles or warrants outstanding.

See also: Cash EPS, Core Earnings, Diluted EPS, Earnings, Net Income, Outstanding Shares, Price to Earnings Ratio, Trailing Twelve Months (TTM)