Earnings per share (EPS)

Also called: earnings per share

The company's profit divided across each share.

Formula

EPS = Net income ÷ Diluted shares

Worked example

1. Net income = $1.5bn
2. Diluted shares = 500.0m
3. $1.5bn ÷ 500.0m

Result: $3.00

How to read it

"Diluted" counts share options that could become shares, so it's the more cautious figure.

Worked example uses made-up figures for 'Example plc'

See it with real numbers: Any company page → (free account)