We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies. You can view our cookie policy and edit your settings here, or by following the link at the bottom of any page on our site.
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.
Help and support
Get answers about your account or our services.
Or ask about opening an account on 0800 195 3100 or newaccounts.uk@ig.com.
We're here 24hrs a day from 8am Saturday to 10pm Friday.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.