Calculating Earnings per Share (EPS) | Finance Strategists
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Calculating Earnings per Share (EPS) | Finance Strategists
Earnings per share, or EPS, is a ratio that divides a company’s earnings by the number of shares outstanding to evaluate profitability and gain a pulse of the company’s financial health. In its most basic form, it is calculated as: EPS = (Net Income) / (Common Stock Outstanding Net Income, divided by the shares of outstanding Common Stock ...
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