Question Details

	Username: BobM Rating: Asked to: Tom Burke Date Created: 01 Jun 2018
Category	28
Tag	Financial
Question	What is 'Earnings Per Share - EPS'?

Advice from Guru

Hi BobM,

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. EPS is calculated as:

EPS = (Net Income - Dividends on Preferred Stock) / Average Outstanding Shares

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