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Price earnings ratio analysis example from amigotutor.com Eps is a very important profitability ratio, particularly for shareholders of a company, because it is a direct measure of dollars earned per share. Earnings per share (eps) is the portion of the company's distributable profit which is allocated to each outstanding equity share (common share). It reports how much net income a company has earned per share of common stock.
Earnings per share ratio (eps ratio) is computed by the following formula:
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