Learn how to calculate earnings per share (EPS) and why it is an important gauge in determining a stock’s value and the profitability of a company.

Earnings per share is one of the most important financial metrics employed when determining a firm's profitability on an absolute basis. It is also a major component of calculating the price-to ...

To calculate earnings per share, divide a company’s annual or quarterly profit by the number of shares of stock it has outstanding. Note: If a company has both preferred and common stock ...

Earnings yields are calculated as earnings per share divided by share price ... Learning how to calculate, interpret, and use an earnings yield helps you make well-rounded investment decisions.

Take the retained earnings at the beginning of the ... Using this method to calculate dividends per share may not be 100% accurate because a company may increase or lower its dividends (they ...