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Finance Glossary

Earnings-per-share

Earnings-p...

Earnings Per Share



Definition of Earnings Per Share


Earnings per share (EPS) refers to the monetary value of the earnings per outstanding share of common stock for a company. It is an important indicator of the profitability of a company, and is one of the methods of calculating the price of a stock. It is calculated as: (Net Income – Preferred Dividends) / Weighted Average of Common Shares


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