Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitability.
 | | Term of the Day | Words to Know | | |  | | Earnings Per Share – EPS | | Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company's profitability. It is common for a company to report EPS that is adjusted for extraordinary items and potential share dilution. The higher a company's EPS, the more profitable it is considered. | | Read More » | | Related to "Earnings Per Share – EPS" | | | | The 5 Types of Earnings Per Share | | Earnings per share is a key number used by many investors to evaluate stock performance, but it isn't as simple a figure as it appears. Here's what to look for behind the numbers. | | Read More » | | | Extraordinary Item | | An extraordinary item was a gain or loss from unusual events previously identified on a company's income statement. Extraordinary items were removed from GAAP standards as of 2015. | | Read More » | | | Shares Outstanding | | Shares outstanding refer to a company's stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company's insiders. | | Read More » | | | Price-to-Earnings Ratio | | The price-to-earnings ratio (P/E ratio) is defined as a ratio for valuing a company that measures its current share price relative to its per-share earnings. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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