David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

Earnings per share (EPS) is the amount of a company ... Limitations to the P/E Ratio The first part of the P/E equation or price is straightforward because the current market price of a stock ...

and it is used in the calculation of other popular valuation metrics like the price-to-earnings (P/E) ratio. To calculate earnings per share, divide a company’s annual or quarterly profit by the ...

The basic formula for calculating the P/E ratio of a company is: P/E = Market Price per Share / Earnings per Share The market price per share is the current price that the company's stock is ...

Estimates of a company’s future earnings usually are reported on a per-share basis, either for a quarter or a fiscal year. Earnings estimates are the projected profits of a company for a period.