Earnings per share (EPS) is a part of company’s net income that is allocated to each outstanding share. It is calculated as company’s net income divided by its shares outstanding.
EPS is one of the most popular parameter of company’s business among investors. But one should bear in mind that company’s earnings often don’t clearly reflect actual cash that was generated during reported period. To get more full-scale understanding of company’s profitability one may be interested in other measures such as free cash flow.
PortfolioAnd.Me – is a platform for the analysis of stocks and investment portfolios using artificial intelligence, as well as search and compare of shares and ETFs, backtesting and fundamental company data.Learn more!