You are here:About>Business & Finance>Stocks> Glossary> E> Earnings Per Share - Understanding Earnings Per Share
About.comStocks
Newsletters & RSSEmail to a friendSubmit to Digg

"Earnings Per Share"

From Ken Little,
Your Guide to Stocks.
FREE Newsletter. Sign Up Now!
Definition: Earnings Per Share is calculated by dividing a company's net revenues by the outstanding shares. This gives you a number you can use to compare the earnings of companies since it is unlikely any two companies will have the same number of shares outstanding.
Also Known As: EPS
Examples: XYZ Company reported third quarter EPS of $1.25.
 All Topics | Email Article | | |
Advertising Info | News & Events | Work at About | SiteMap | Reprints | HelpOur Story | Be a Guide
User Agreement | Ethics Policy | Patent Info. | Privacy Policy©2008 About, Inc., A part of The New York Times Company. All rights reserved.