Earnings Per Share (EPS)

What is ‘Earnings Per Share – EPS’

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.

Explaining ‘Earnings Per Share – EPS’

Earnings per share is generally considered to be the single most important variable in determining a share’s price. It is also a major component used to calculate the price-to-earnings valuation ratio.

Further Reading

  • Economic value added, future accounting earnings, and financial analysts' earnings per share forecasts – link.springer.com [PDF]
  • The Effect Of Earnings Per Share (EPS) & Return On Equity (ROE) On Stock Price Of Banking Company Listed In Indonesia Stock Exchange (Idx) 2010-2014 – ejournal.unsrat.ac.id [PDF]
  • Earnings management through transaction structuring: Contingent convertible debt and diluted earnings per share – onlinelibrary.wiley.com [PDF]
  • Is it time to get rid of earnings-per-share (EPS)? – academic.oup.com [PDF]
  • Interest rate and financial performance of banks in Pakistan – ideas.repec.org [PDF]
  • Stock repurchases and executive compensation contract design: The role of earnings per share performance conditions – meridian.allenpress.com [PDF]
  • How earning per share (EPS) affects on share price and firm value – dspace.bracu.ac.bd [PDF]
  • The effect of financial leverage on corporate performance of some selected companies in Nigeria – 52.196.142.242 [PDF]