What is EPS? Formula and Definition скачать в хорошем качестве

What is EPS? Formula and Definition

Earnings Per Share Formula Our ‘Earnings Per Share (EPS) Foruma’ video explores how to calculate earnings per share, and why it’s a vital metric for investors. Earnings Per Share measures how much profit a company has generated for its shareholders on a per-share basis, and has many applications in the investment world. 00:00 - What is EPS? 00:48 - EPS Example 01:20 - Main types of EPS 02:30 - When is EPS reported? Enjoy the full article over at our Investing Academy here: https://www.investing.com/academy/ana... Like this video? Subscribe to Investing.com here on YouTube: / @investingcom Get started on your investment journey with InvestingPro, the best platform for researching and tracking stocks: https://www.investing.com/pro/?entry=... #EPS #EarningsPerShare #Investing #HowToInvest #StockMarket Earnings Per Share Formula ‘Earnings Per Share’, or EPS for short, is a financial metric that represents the portion of a company's profit attributable to each outstanding share of its common stock. In other words, EPS measures how much profit a company has generated for its shareholders on a per-share basis. EPS is often used as an indicator of a company's profitability and its ability to generate earnings for its investors. It is one of the most widely watched metrics by investors, analysts, and financial professionals alike as it provides insight into a company's financial performance over time and helps in comparing the earnings of different companies within the same industry. Here is an example: For a full year, ABC Corporation generates $10 million in net income. Its basic share count is 10 million. ABC also has 1 million stock options outstanding with an exercise price of $10, while its stock trades at $20. Basic EPS for ABC, for the year, is calculated by dividing earnings by basic share count. In this case, that means $10 million divided by 10 million shares, or $1.00 even. There are two main types of EPS: Basic EPS: This calculation divides the company's net income available to common shareholders by the total number of outstanding common shares. It's a straightforward calculation and assumes that no other securities, like convertible bonds or stock options, are in play. Basic EPS = (Net Income - Preferred Dividends) / Total Outstanding Common Shares Diluted EPS: This calculation takes into consideration all potential dilutive securities, such as convertible bonds, stock options, and other convertible securities that could be converted into common shares. Diluted EPS provides a more conservative measure of earnings per share, as it considers the potential impact of these securities on the number of outstanding shares. Diluted EPS = (Net Income - Preferred Dividends) / (Total Outstanding Common Shares + Potential Additional Shares from Convertible Securities) EPS is often reported on a quarterly and annual basis in a company's financial statements. Investors use EPS to assess a company's performance over time and to compare it to the performance of other companies in the same industry. Generally, a higher EPS indicates greater profitability on a per-share basis, which can be an attractive factor for investors. However, it's important to consider EPS in conjunction with other financial metrics to get a comprehensive understanding of a company's financial health. With a premium subscription to InvestingPro, you can instantly see essential EPS data for any instrument at a glance by adding them to your customizable key statistics. For example: you can add unlocked Pro metrics like EPS CAGR (5y) and EPS Growth Forecast for a faster-than-ever snapshot - an instant readout of a company’s profitability. NOT FINANCIAL ADVICE DISCLAIMER: The information contained here and on our website are not intended as, and shall not be understood or construed as, financial advice. Before deciding to trade you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, experience, and risk appetite, and seek professional advice where needed. Fusion Media and any provider of the data contained in media or on our website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained on our platforms.