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Earnings per share (EPS)

Profit attributable to a single share.

Formula

EPS = \frac{\text{Net income}}{\text{Number of shares}}

How to read the number

The denominator of P/E. It grows both when profit rises and when the share count shrinks through a buyback.

When the metric lies

Diluted EPS accounts for options and convertible instruments and is almost always lower than the basic figure.

Also known as: earnings per share, eps

Related terms