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EPS (Earnings Per Share)
Net income divided by shares outstanding; profit per share.
EPS (Earnings Per Share)
EPS helps normalize profit by share count.
Watch for dilution
If shares outstanding rise, EPS may grow slower than net income.
Key Takeaways
- Compare metrics over multiple periods to identify trends.
- Always consider industry context when evaluating numbers.
- Combine with other metrics for a complete picture.
Quick Reference
Category
Financials
Difficulty
Intermediate
Reading Time
1 min
Related Terms
Financial Statements
Core reports that show profitability, balance sheet strength...
Income Statement
A report of revenue, expenses, and profit over a period (qua...
Balance Sheet
A snapshot of assets, liabilities, and equity at a point in...
Cash Flow Statement
Tracks cash generated and used by operations, investing, and...
Revenue
The total sales a company earns during a period.
Learn More
Where You'll See This
EPS estimates appear in earnings reports and stock key metrics.