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EPS

Definition

Earnings per Share. 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.

Featured Tip

How Earnings Per Share is ImportantEarnings per share (EPS) is what drives the value of a stock. Even though cash flow and free cash flow are more instructive, the market pays attention to and reacts to earnings. The more accurately yo ... Read more