Stock Market Investors » Glossary of Stock Terms » What is Earnings per Share - EPS?

What is Earnings per Share (EPS)?

When you decide on the investment in a particular company you can use different tools to compare it with other companies. One of them is the earnings per share (also known as EPS). The latter is calculated by using the number of company's outstanding shares to divide its net revenues. You should keep in mind that it is rare to find companies that have one and the same number of outstanding shares.

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