 |
Earnings Per Share (EPS)Earnings Per Share
or EPS is the company's profit allocated to each outstanding shares. It can be calculated as,
It is therefore, EPS is the profits that belongs to each shares. For example, if stock XYZ made $100 million in net income and has 1000 million shares outstanding, it's EPS would be $0.10 per share. Basically, net income is the difference of sales made and the cost incurred.
However, shares that the company has repurchase (or shares buyback) are not included. EPS can help you compare company's profitability at glance. More importantly, it is very important to calculate
P/E
later on. How to Calculate Intrinsic Value for Stock Warren Buffet Way
Efficiency Ratio, Liquidity Ratio, Leverage Ratio, Profitability Ratio, Search Here For More Information
Top Page of Earnings Per Share Back to Homepage
|
