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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, focussing on the interests of the company's owners ( shareholders ), [ 1 ] and is commonly used to price stocks.
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.
An earnings surprise, or unexpected earnings, in accounting, is the difference between the reported earnings and the expected earnings of an entity. [1] Measures of a firm's expected earnings, in turn, include analysts' forecasts of the firm's profit [2] [3] and mathematical models of expected earnings based on the earnings of previous accounting periods.
Forward P/Es are computed by taking the current stock price divided by the sum of the EPS estimates for the next four quarters, or for the EPS estimate for next calendar or fiscal year or two. P/Es change constantly. If there is a large price change in a stock, or if the earnings (EPS) estimates change, the ratio is recomputed.
Earnings per share (EPS) is a financial measurement that tells investors if a company is profitable. Savvy investors consider a company’s earnings per share when determining investment decisions.
The best place to start is to determine how the stock is valued, and one of the most popular and effective metrics to help make that judgment is earnings per share, known as EPS.
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.
According to Per Afrell, a former analyst at UBS Warburg, buy and sell side research analysts generally maintain a 20 plus page spreadsheet to calculate their earnings per share estimates. When the estimate is first calculated by sell-side analysts, the number is submitted to companies such as First Call to be averaged with other analysts ...