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.
earnings per share (EPS) is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.
earnings per share (EPS) appears in the definitions of the following terms:
net income per share,
financial break-even point,
primary earnings per share,
earnings growth,
price to earnings (PE) ratio,
key ratios,
financial attributes,
profitability ratios,
price/earnings (P/E) multiple,
reverse stock split
and
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