What do you mean by EPS ? AND HOW TO CALCULATE EPS?

Question

Accepted Answer

EPS stands for Earnings Per Share. It is a financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.

EPS is calculated by dividing the company's net income by the number of outstanding shares.
EPS is an important metric for investors as it helps them evaluate the profitability of a company and its potential for growth.
A higher EPS indicates that a company is generating more profit per share, which is generally seen as a positive sign.
EPS can be calculated for a single quarter or for a full fiscal year.
For example, if a company has a net income of $100 million and 50 million outstanding shares, the EPS would be $2 per share ($100 million / 50 million shares).

Accepted Answer

clear indicate Earning per share

P is denote Profit

S is denote Share

Formula Profit is divided by No. of share (Profit/Share)

What do you mean by EPS ? AND HOW TO CALCULATE EPS?

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