What is 'EPS'?

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 » Earnings Per Share (EPS) Versus Diluted EPS Is EPS worth more than Diluted EPS? Learn about the two profitability measures, how they are calculated, and the difference between the two. Read More » SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » The Dangers of Share Dilution Companies dilute their stock for a variety of reasons and each dilution can impact your portfolio's bottom line. Read More » Podcast Alert: The Investopedia Express with Caleb Silver Get ready for the week ahead with Investopedia's Editor in Chief, Caleb Silver, as he digs into the most important stories in finance and global economics. Listen now on: Apple Podcasts » Spotify » Google Podcasts » Related Definitions 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 » Diluted Earnings per Share Diluted EPS is a performance metric used to assess a company's earnings per share (EPS) if all convertible securities were realized. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy