Get Earning Per Share Ratio Pics. Earnings per share ratio (eps ratio) is computed by the following formula: The numerator is the net income available for common stockholders (i.e., net income less preferred dividend) and the denominator is the average number of shares of common stock outstanding during the year.
When comparing one company to others, a higher eps is considered the mark. Earnings per share (eps) is the monetary value of earnings per outstanding share of common stock for a company. What is the earnings per share (eps) formula?
Earnings per share (eps) is the portion of a company's net income, that would be earned per share if all profits were paid out to shareholders.
For example, a stock selling at $15 per share with $1 of eps would have a p/e of 15. What is the earnings per share (eps) formula? Earnings per share (eps) is a company's net profit divided by the number of common shares it has outstanding. Let's stick with our example from the basic eps.
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