Definition of Earnings Per Share

Financial Terms Beginning with E

What is Earnings Per Share

Earnings per share (EPS) is a measure of profit that a company makes for each share of its stock. It is calculated using a company’s net profit divided by the total number of outstanding shares of common stock.

A widely used metric for estimating corporate value, a higher EPS generally indicates greater value.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

Price to Book Ratio

Price to Earnings Ratio

H-Share (China)

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