Earnings per Share (EPS)

Home » CMA Glossary Term » Ratios and Performance Metrics » Earnings per Share (EPS)

Earnings per Share (EPS) is a financial metric that quantifies the portion of a company’s profit allocated to each outstanding share of common stock. It is calculated by dividing net income by the weighted average number of common shares outstanding during a period. EPS is a key indicator of a company’s profitability and is widely used by investors to assess financial performance.

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