Earnings Per Share (EPS)

Earnings per share (EPS) is the portion of a company’s profit allocated to each share of common stock. Earnings per share serve as an indicator of a company’s profitability.

EPS calculation

Earnings per share (EPS) = Net Earnings (profit) / Total Outstanding Shares

Increasing earnings per share causes your firm’s share price to rise because the profit being earned per share is increasing which increases the value to investors.

Was this article helpful?

Related Articles

Need Support?
Can't find the answer you're looking for?
Contact Support