Earnings Per Share (EPS)

What is it? The net income (or earnings) of a company for the past 12 months divided by the current number of shares. For example, if a company has $2 million in net income and 2 million outstanding shares, then its earnings per share is $1.00.Many investors consider this an important fundamental to consider when deciding whether to buy or sell a stock.

Added By: Elijah

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