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 ...

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 ...