Saturday, October 30, 2010

What is EPS value - Earnings per shar

EPS is also another common word in share trading. It always a good practice to check this value before buying the stocks.

Earnings per share (EPS) is the amount of earnings per each outstanding share of a company's stock.he EPS formula does not include preferred dividends for categories outside of continued operations and net income. Earnings per share for continuing operations and net income are more complicated in that any preferred dividends are removed from net income before calculating EPS.

Differenet EPS value calculation formulas are

  1. profit / Weighted Average Common Shares
  2. Net Income / Weighted Average Common Shares
  3. Income from Continuing Operations / Weighted Average Common Shares

1 comment:

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