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Earnings per share (EPS) is the monetary value of earnings per outstanding share of common stock for a company during a defined period of time. It is a key measure of corporate profitability, focusing on the interests of the company's owners ( shareholders ), [ 1 ] and is commonly used to price stocks.
Earnings per share can be used with other financial indicators to understand a company's profitability. But how is it calculated and how useful is it, really?
Earnings per share (EPS) measures the amount of total profit earned per outstanding share of common stock in a specific period, usually either a quarter or a year.
A financial ratio or accounting ratio states the relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting , there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.
The return on equity (ROE) is a measure of the profitability of a business in relation to its equity; [1] where: . ROE = Net Income / Average Shareholders' Equity [1] Thus, ROE is equal to a fiscal year's net income (after preferred stock dividends, before common stock dividends), divided by total equity (excluding preferred shares), expressed as a percentage.
This commonly-cited ratio is a key building block in valuing stocks Continue reading... Skip to main content. 24/7 Help. For premium support please call: 800-290-4726 more ways to ...
A company's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, [1] pronounced / ˈ iː b ɪ t d ɑː,-b ə-, ˈ ɛ-/ [2]) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset ...
Earnings per share is net income divided by the total number of shares outstanding. Plainly put, it's the amount of money an investor earns for each share.