Earnings per share is the quotient of a company's net income divided by the number of shares of stock it has outstanding. In other words, EPS is a company's profit expressed on a per-share basis.

Here, “price” means current price per share of a stock, and “earnings” means a company's profit per share over a specific period of time (usually a year). In other words, a company's P/E ...

Reviewed by David Kindness Fact checked by Vikki Velasquez The price-to-earnings ratio (P/E) is one of the most widely used ...