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 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.

For example, say the total number ... In cell B7, input the formula "=B6/B5" to render the EPS ratio. Earnings per share (EPS) is an important profitability measure used in relating a stock's ...

Earnings yields are calculated as earnings per share divided by ... into net income. This formula produces the same answer as the EPS divided by the share price. The result is expressed as a ...

A P/E (price-to-earnings ... per share. Another way to conceptualize a company’s P/E ratio is to think of it as the price investors pay for $1 of company earnings per year. Using the example ...