Investor Glossary-earnings per shareInvestor Glossary-earnings per shareInvestor Glossary-earnings per shareInvestor Glossary-earnings per shareInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Earnings Per Share

The HTML to link to this page
 

A company's earnings per share (EPS) is determined by dividing the company's profits by the number of shares that a company has outstanding. If a company has a profit of $10 million and has 20 million outstanding shares, then the company's earnings per share is fifty cents ($0.50). Since the number of shares that a company has outstanding can vary from day to day, earnings per share are often calculated from an average of the outstanding shares for a reporting period. Earnings per share can be used to help determine a company's performance; if earnings per share is growing at a relatively rapid rate then an investor might consider buying the stock, and if earnings per share is declining then it might be time to sell. Earnings per share is often used to help determine a company's value. For example, a company's price to earnings ratio is calculated by dividing the stock price by the company's earnings per share.



Rate this Earnings per Share definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, EBITDA, average price per share, current ratio, FTSE, 1035 exchange, LIBOR, annual return, deferred revenue, option premium, 401a, command economy, open position, real GDP, implied volatility, in escrow, quality assurance, cancelled check, dividends payable, covered put, stock split, 1031 exchange, class C shares, required rate of return, ex-dividend, limit order, risk management, Zero Cost Collar, reverse mortgage, minority interest, VIX, deferred tax, Key Rate Duration, margin rate, wholly-owned subsidiary, APR, 144a, diluted share, stock market close, FICO score, ex-dividend date, phantom income, per diem, debt service coverage, balance sheet, retained earnings, irrevocable trust, labor relations, liquidity ratio


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use