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Earnings per Share

Definition

EPS. Total earnings divided by the number of shares outstanding. Companies often use a weighted average of shares outstanding over the reporting term. EPS can be calculated for the previous year ("trailing EPS"), for the current year ("current EPS"), or for the coming year ("forward EPS"). Note that last year's EPS would be actual, while current year and forward year EPS would be estimates.

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Finding Companies that Share the Highest Amount of ProfitsPayout ratios are calculated by dividing dividends per share by earnings per share and indicates the percentage of profits the company is distributing to shareholders. If investors are seeking to inve ... Read more