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Earnings Per Share (EPS)

What is 'Earnings Per Share - EPS'

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.

Explaining 'Earnings Per Share - EPS'

Earnings per share is generally considered to be the single most important variable in determining a share's price. It is also a major component used to calculate the price-to-earnings valuation ratio.


Further Reading


Economic value added, future accounting earnings, and financial analysts' earnings per share forecasts
link.springer.com [PDF]
… attention paid to new financial performance measures as substitutes for traditional accounting-based earning per share measures (Ittner … and EPS for year ended December 31, t − 1. Pt−1 is the common stock price on … ECONOMIC VALUE ADDED AND EARNINGS PER …

The Effect Of Earnings Per Share (EPS) & Return On Equity (ROE) On Stock Price Of Banking Company Listed In Indonesia Stock Exchange (Idx) 2010-2014The Effect Of Earnings Per Share (EPS) & Return On Equity (ROE) On Stock Price Of Banking Company Listed In Indonesia Stock Exchange (Idx) 2010-2014
ejournal.unsrat.ac.id [PDF]
… attention paid to new financial performance measures as substitutes for traditional accounting-based earning per share measures (Ittner … and EPS for year ended December 31, t − 1. Pt−1 is the common stock price on … ECONOMIC VALUE ADDED AND EARNINGS PER …

Earnings management through transaction structuring: Contingent convertible debt and diluted earnings per shareEarnings management through transaction structuring: Contingent convertible debt and diluted earnings per share
onlinelibrary.wiley.com [PDF]
… attention paid to new financial performance measures as substitutes for traditional accounting-based earning per share measures (Ittner … and EPS for year ended December 31, t − 1. Pt−1 is the common stock price on … ECONOMIC VALUE ADDED AND EARNINGS PER …

Is it time to get rid of earnings-per-share (EPS)?Is it time to get rid of earnings-per-share (EPS)?
academic.oup.com [PDF]
… attention paid to new financial performance measures as substitutes for traditional accounting-based earning per share measures (Ittner … and EPS for year ended December 31, t − 1. Pt−1 is the common stock price on … ECONOMIC VALUE ADDED AND EARNINGS PER …

Interest rate and financial performance of banks in PakistanInterest rate and financial performance of banks in Pakistan
ideas.repec.org [PDF]
… attention paid to new financial performance measures as substitutes for traditional accounting-based earning per share measures (Ittner … and EPS for year ended December 31, t − 1. Pt−1 is the common stock price on … ECONOMIC VALUE ADDED AND EARNINGS PER …

Stock repurchases and executive compensation contract design: The role of earnings per share performance conditionsStock repurchases and executive compensation contract design: The role of earnings per share performance conditions
meridian.allenpress.com [PDF]
… attention paid to new financial performance measures as substitutes for traditional accounting-based earning per share measures (Ittner … and EPS for year ended December 31, t − 1. Pt−1 is the common stock price on … ECONOMIC VALUE ADDED AND EARNINGS PER …

How earning per share (EPS) affects on share price and firm valueHow earning per share (EPS) affects on share price and firm value
dspace.bracu.ac.bd [PDF]
… attention paid to new financial performance measures as substitutes for traditional accounting-based earning per share measures (Ittner … and EPS for year ended December 31, t − 1. Pt−1 is the common stock price on … ECONOMIC VALUE ADDED AND EARNINGS PER …

The effect of financial leverage on corporate performance of some selected companies in NigeriaThe effect of financial leverage on corporate performance of some selected companies in Nigeria
52.196.142.242 [PDF]
… attention paid to new financial performance measures as substitutes for traditional accounting-based earning per share measures (Ittner … and EPS for year ended December 31, t − 1. Pt−1 is the common stock price on … ECONOMIC VALUE ADDED AND EARNINGS PER …



FAQ


What is the price-earnings ratio?

The price-earnings ratio is the ratio of a company's share (stock) price to the company's earnings per share.

How do you calculate PE ratios?

You can calculate PE ratios by dividing a stock's current market price by its earnings per share for the most recent 12 months. For example, if Share A is trading at 24 and the earnings per share for the most recent 12-month period is 3, then Share A has a PE ratio of 24(3 per year) = 8. Put another way, the purchaser of Share A is investing 8 for every dollar of annual earnings; or, if earnings stayed constant it would take 8 years to recoup your investment in this stock. Companies with losses (negative earnings) or no profit have an undefined PE ratio (usually shown as "not applicable" or "NA"); sometimes, however, a negative PE ratio may be shown.

Are there multiple versions of PE ratios?

What formula should you not use when calculating a PE Ratio?

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