earnings per share (EPS)
Definition
Net income of a firm divided by the number of its outstanding shares the shares held by the stockholders (shareholders). Primary earnings per share (also called fully diluted EPS) takes into account all shares currently outstanding, plus the number of shares that would be outstanding if all convertible bonds and convertible preferred stock (preference shares) were exchanged for common stock (ordinary shares). Also called net income per share. Formula: (Total revenue - Total expenses) ÷ Number of outstanding shares.
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