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Earnings Per Share (EPS)
Definition
This is the portion of a company's profits (earnings) after paying bondholders, preferred stock holder's dividends and taxes that is available to common share holders.
Using the term Earnings Per Share (EPS) :
If a company had profits after tax of $50 million last year and has 25 million shares outstanding, then earnings per share is $2.
Pay Special Attention To :
Earnings Per Share may be easily manipulated by management. Be very careful of this at all times. You can read more on this in our article on earnings manipulation .
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Related terms
Price to Earnings Ratio , Earnings Manipulation , Multiple
