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Earnings per Share

In a given fiscal year, a publicly-traded company's profit divided by the number of shares outstanding. This is considered the single most important aspect in determining a share's price and value, because the calculation of earnings per share shows the amount of money to which a shareholder would be entitled in the event of the company's liquidation. In general, earnings per share applies only to common shares. It is calculated thusly:

Earnings per share = (Net income - Preferred dividends) / Average shares outstanding.


Earnings per share (EPS).

Earnings per share (EPS) is calculated by dividing a company's total earnings by the number of outstanding shares.

For example, if a company earns $100 million in a year and has 50 million outstanding shares, the earnings per share are $2.

Earnings per share can also be calculated on a fully diluted basis, by adding outstanding stock options, rights, and warrants to the outstanding shares.

The results report what EPS would be if all of those options, rights, and warrants were exercised and the company had to issue more shares to meet its obligations.

Earnings and other financial measures are provided on a per share basis to make it easier for you to analyze the information and compare the results to those of other investments.

References in periodicals archive ?
The lack of uniformity in EPS requirements in the global arena is potentially problematic.
The major difference between the PMMA monomer and that of EPS is that PMMA contains five carbon atoms compared with eight in EPS.
Although WEPS requires more energy for pre-expansion than standard EPS, WEPS reportedly takes much less energy (and time) for shape molding.
Because it's expensive to ship EPS packaging long distances, Hirsch now sells a mobile plant that can be set up near the customer.
Waste EPS generally isn't recycled back into flame-retardant construction products because of building-code restrictions.
Instead, companies may actually report higher EPS if they reinvest cash proceeds from exercised stock options into internal investment opportunities.
Four large commercial EPS cup makers and one EPS bead producer have recently launched new dual-material cup technologies that permit the first use of all-over printing with high-quality graphics on EPS.
Despite exceeding analysts' short-term EPS estimates, the company found that its customers were delaying technology investments or eliminating significant parts of their IT budgets.
Koyo's parent company, Koyo Seiko, pioneered the production of EPS systems in Japan in 1988.
128, Earnings per Share, requires all entities with publicly held common stock or potential common stock to report EPS according to the statement.