Earnings per share definition

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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.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.