EPS

EPS Full Form: Earning per share

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Key Highlights

  • Earning per share simply represents a company's net income divided by the number of shares of common stock outstanding.

  • Earning per share formula = Net income of the company/Outstanding Shares of the company

What is EPS?

Earning per share simply represents a company's net income divided by the number of shares of common stock outstanding. EPS is used by investors and analysts to evaluate a company's profitability, and it is also a key component in many stock valuation models.

How Earning Per Share is Calculated?

Earning per share formula = Net income of the company / Outstanding Shares of the company

  • Earning per share is calculated by dividing the company's net income by the number of shares outstanding.

  • EPS can be both positive and negative, depending on a company's profitability.

  • In general, a higher EPS is better for shareholders, as it indicates that the company is generating more profit per share.

  • EPS is an important measure of a company's financial health, and should be considered alongside other metrics such as revenue and operating cash flow.

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