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Earnings per share

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Definition

<a href="http://www.investopedia.com/terms/e/eps.asp">Earnings per share</a> is the portion of a company's profit allocated to each outstanding share of common stock.

Formula

(Net Income - Dividends on preferred stock)/Average Outstanding shares

Use Case / Interpretation

EPS serves as an indicator of a company's profitability.

Tags

profit, earning