Glossary · from the DESK dictionary
Earnings Per Share (EPS)
A company's net profit allocated to a single share.
In plain words
How much profit 'belongs' mathematically to each individual share.
Formula
EPS = Net income / Shares outstanding
Divides the company's net profit by the number of shares outstanding.
Example
A company with $100 million net profit and 50 million shares outstanding has EPS of $2.
What it means for traders
A core fundamental analysis metric and the basis for the price-to-earnings ratio.
Common pitfalls
Can be distorted by buybacks or one-off items — analysts often distinguish GAAP EPS from adjusted EPS.
Related terms
Accretive vs. Dilutive · Attributable Profit · Basic Earnings Per Share (Basic EPS) · Bottom Line · Share Buyback · Cash Flow Per Share · Diluted Earnings Per Share (Diluted EPS) · Profit · Headline Earnings · Income Statement · Price-to-Earnings Ratio (P/E)
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.