What is 'Earnings Per Share - EPS'?

Modified on Mon, 18 Jun 2018 at 10:10 AM

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


Source: Investopedia

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