EPS

How much profit sits on each share

In detail

Earnings per share is net income divided by shares outstanding. Total profit depends on company size, but EPS puts it per share, which is what you compare against the price. Issue more shares and EPS falls even if profit holds; buy shares back and it rises. Whether EPS has grown for several years running is a basic read on growth.

Example

Net income of $3 billion across 20 million shares gives EPS of $150.

Related terms

P/E ratio Net income Revenue

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