Earnings Per Share (EPS) is a financial metric that measures the portion of a company's profit allocated
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Earnings Per Share (EPS) is a financial metric that measures the portion of a company's profit allocated to each outstanding share of its common stock. It is calculated by dividing the company's net income attributable to common shareholders by the average number of outstanding shares during a specific period, typically a quarter or a year. EPS is a key indicator of a company's profitability and is widely used by investors and analysts to assess a company's financial performance and value its stock.
What does Earnings Per Share (EPS) measure?
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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