The earnings per share formula is useful for valuing stocks. It’s a key part of the widely-used price-to-earnings ratio. And by gaining a better understanding of these concepts, you can make better ...

Basic EPS is calculated by dividing net income minus preferred dividends by outstanding shares. Diluted EPS includes potential shares from obligations like stock options or convertible bonds. Using ...

Earnings per share indicates a company's net income for each outstanding share of its common stock. A positive EPS indicates profitability, while a negative EPS reveals an unprofitable financial ...

Evaluating investments can be confusing for beginner investors, especially because so many different financial indicators work together to indicate whether a company is a good investment. Below is a ...