Earning Per Share (Noun)
Meaning
The portion of a company's profit allocated to each outstanding share of common stock.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The earning per share represents an important metric for investors to gauge a company's profitability and overall performance.
- By calculating the net income of the company and then dividing it by the number of outstanding shares, investors can determine the earning per share.
- A higher earning per share indicates that a company is more profitable and can increase shareholder value over time.
- To calculate the earnings per share, financial analysts use various earning per share metrics such as basic, diluted or prospective EPS.
- When looking to invest in the stock market, investors typically examine a company's earning per share to assess its financial health and forecast future growth.