Earnings Per Share


In the stock market and penny shares investment business the term EPS refers to the earnings per share, i.e. how much each share earns.

The EPS is the amount that a company allocates from its profits to the outstanding common shares. EPS or earning per share is used as a way of estimating how profitable a company really is.

However, the number of outstanding shares changes over time and so it makes more sense to take a weighted or mean average of the outstanding shares in the term that a report is made, as an indication of a company’s profitability.

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