The earnings per share metric is a valuable tool for investors to use when investigating the profitability of a company against its outstanding equity. From there, the components that come together to make this metric are as useful to investors as the output that they create, because … [Read more...]
How to use the Earnings Per Share Formula
Filed Under: Earnings Per Share by
When looking at the differences between the basic earnings per share (EPS) and diluted earnings per share metrics that we have discussed in previous articles, it can sometimes be confusing to figure out exactly how it is that we can use this sort of information to make a meaningful … [Read more...]
Earnings per Share
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Earnings per Share Profit of a company divided by number of shares outstanding. A company that earns $5 million this year and has 5 million shares outstanding, has an EPS of $1 for each share. Often the weighted average of outstanding shares is used for this calculation. … [Read more...]
