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Earnings Per Share

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updated 20 Feb 2023

Earnings Per Share, often referred to as EPS is Net Income / Number of Shares

Why It Matters

Earnings per Share allows an investor to understand how much profit a company is generating on a per share basis. How many dollars is the company making for every share I buy or own. More importantly it is critical in calculating the Price to Earnings Ration.

Other Resources

What is EPS in Stocks