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Earnings Per Share (EPS)

What is Earnings Per Share?

A company's net profit divided by its shares outstanding.

Understanding Earnings Per Share

EPS shows how much profit a company earns for each share of common stock.

It is the denominator of the P/E ratio and a key figure in quarterly earnings reports.

Formula

EPS=Net income−Preferred dividendsWeighted avg. shares outstanding\text{EPS} = \frac{\text{Net income} - \text{Preferred dividends}}{\text{Weighted avg. shares outstanding}}
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