Earnings Per Share

Asset symbol is not found or was delisted

We are unable to locate this entity at this time. If you believe the symbol you are trying to look up is valid, please let us know, and we will check it out. Check all delisted instruments across multiple markets.

Indicator Description

Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.

Earnings per Share

 = 

Earnings

Average Shares

Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.

Earnings Per Share In A Nutshell

If there is a single data point that is used in almost every fundamental analysis, earnings per share would be it. With that, the best way to use this is when you identify a stock or equity worth investing, find the EPS for that stock and the others that compete in the same space.

Earnings per share or EPS is taking the company’s net income, subtracting dividends, and dividing that by how many shares are outstanding. EPS is used as a measuring tool to value a stock and compare it against others in the industry.

Closer Look at Earnings Per Share

When looking for an investment, you want to find the balance between value, low risk, and reputation of the company. If you take the EPS share of the equity you are researching, be sure to look at the historical numbers as well because you want to see a trend to the upside, which means the company is becoming more profitable, fueling potential growth into the future.

As with any financial data point, it is not wise to rely on just one financial number, but rather calculating others and getting a wide and vast opinion. Also, be sure to pick apart the calculation and understand what is generating the number. Understand the net income and find out how it is projected to do into the future. Then look at dividends and see if the company is going to make more into the future. Lastly, look at the outstanding shares and see if the company has implemented a share buyback program, which will shrink the denominator. These all will factor into the number you look at and can help to tell a little bit more of the story.

If you are stuck or need more background information, head to the Internet and find ways people are using this in their research. Join an investing and trading community and ask people the most efficient ways they are using this data point. Lastly, you can reach out to an investing professional and they help you in implementing this into your analysis of equities. EPS is certainly one you should know and understand how to use because it is widely used and implemented in many valuation tools and reports.

Other Suggestions

NAV NAVCryptocurrency
NAVI Navient CorpCompany
NAVAX Navigator Equity HedgedMutual Fund
NAV Navistar InternationalCompany

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Use Investing Themes to Complement your positions

You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Baby Boomer Prospects Thematic Idea Now

Baby Boomer Prospects
Baby Boomer Prospects Theme
Equities with large market capitalization that account for significant contribution to overall economic growth especially within dividend-paying instruments and stocks from healthcare and financial sectors. The Baby Boomer Prospects theme has 99 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Baby Boomer Prospects Theme or any other thematic opportunities.
View All  Next Launch
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Content Syndication
Quickly integrate customizable finance content to your own investment portal