Earnings per share definition

Earnings per share, or EPS, is an important metric in a company’s earnings figures. It is derived from the total amount of profit generated in a period, divided by the number of shares in the company listed on the stock market.

EPS is used to determine the value attached to each outstanding share of a company. In a market where the amount of profit made by companies and the amount of shares on exchanges can vary, EPS gives a per-capita way of evaluating companies.

To calculate a company’s EPS, first derive their net profit by taking net income and subtracting any dividend payments. Then divide that figure by the amount of outstanding shares: usually taken as a weighted average over the period.

EPS is a very important factor when examining a business’s fundamentals

Visit our economic calendar

To see when companies are releasing earnings, take a look at the economic calendar.

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Contact us

Questions about opening an account:

+61 (3) 9860 1799

Existing client questions:

+61 (3) 9860 1734 or +44 2078 960079

We're here 24hrs a day from 7am Saturday to 9pm Friday (GMT).