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• Earnings per share (EPS) is calculated by dividing a company's total earnings by the number of outstanding shares.

  For example, if a company earns $100 million in a year and has 50 million outstanding, or existing, shares, the earnings per share are $2.

  Earnings per share can also be calculated on a fully diluted basis, by adding outstanding stock options, rights, and warrants to the outstanding shares.

  The results report what EPS would be if all of those options, rights, and warrants were exercised and the company had to issue more shares to meet its obligations.

  Earnings and other financial measures are provided on a per share basis to make it easier for you to analyze the information and compare the results to those of other investments.

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  Cite Definition for Earnings per share (EPS)

  American Psychological Association (APA)

  Earnings per share (EPS). (n.d.). Yahoo Personal Finance Glossary. Retrieved March 27, 2023, from website: http://www.expertglossary.com/definition/earnings-per-share-eps.

  Chicago Manual of Style (CMS)

  Earnings per share (EPS). finance.yahoo.com. Yahoo Personal Finance Glossary. Yahoo Finance. http://www.expertglossary.com/definition/earnings-per-share-eps (accessed: March 27, 2023).

  Modern Language Association (MLA)

  "Earnings per share (EPS)." Yahoo Personal Finance Glossary. Yahoo Finance. 27 March. 2023 http://www.expertglossary.com/definition/earnings-per-share-eps.

• Browse Related Terms: Blue chip stock, Cook the books, Debt-to-equity ratio, Dividend payout ratio, Earnings per share (EPS), EBITDA, Free cash flow, Gross margin, Income statement, Net margin, Payout ratio, Price-to-cash flow, Profit margin, Return on equity, Revenue

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