Definition of Earning Per Share (EPS)

Definition of Earning Per Share (EPS)

Definition: What is Earning Per Share?

Earning per share is also known as net income per share. This is the market prospect ratio which measures the net income amount earned per share of stock outstanding.

Definition of Earning Per Share (EPS)

Earning per share is the money which received by each share if at the end of year company distribute all of the profit to outstanding shares.

Through this ratio, it is easily analyzed that, how the company is profitable on a shareholder basis. So profit per share of a larger company can be compared by the profit per share of a small company.

Financial Ratio is a forum where you will learn about all ratios definitions and formulas.

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