Earnings Per Share (EPS)
Earnings per share (EPS) is a financial metric used to measure the profitability of a company. It is calculated by dividing the company’s net income by its total number of outstanding shares. EPS is a key indicator of a company’s performance and is used by investors to compare the profitability of different companies. It is also used to determine the value of a company’s stock.
History of Earnings Per Share
The concept of earnings per share has been around since the early 1900s. It was first used by the American Stock Exchange in the 1920s. Since then, it has become a widely used metric for evaluating the performance of a company. It is used by investors to compare the profitability of different companies and to determine the value of a company’s stock.
Comparison of EPS
| Company | EPS |
|---|---|
| Company A | $1.50 |
| Company B | $2.00 |
| Company C | $1.25 |
Summary
Earnings per share (EPS) is a financial metric used to measure the profitability of a company. It is calculated by dividing the company’s net income by its total number of outstanding shares. EPS is a key indicator of a company’s performance and is used by investors to compare the profitability of different companies. For more information about EPS, you can visit websites such as Investopedia, The Motley Fool, and Yahoo Finance.
See Also
- Price-to-Earnings Ratio (P/E Ratio)
- Dividend Yield
- Return on Equity (ROE)
- Return on Assets (ROA)
- Price-to-Book Ratio (P/B Ratio)
- Price-to-Sales Ratio (P/S Ratio)
- Gross Profit Margin
- Operating Profit Margin
- Net Profit Margin
- Cash Flow Per Share (CFPS)
