What Is EPS (Earnings Per Share)?

Explained

Companies report EPS in their quarterly results, and the market compares it with forecasts. Basic EPS uses the shares outstanding; diluted EPS adds shares that may be issued later, such as employee options, so it is usually lower or equal.

Example

Example with made-up numbersA net profit of 2 billion dollars and 1 billion shares give EPS of 2 ÷ 1 = 2 dollars.

Use it in Joymista

• FUNDAMENTAL ANALYSISFundamental analysis of US stocks

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