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Jodi - could this definition be considered more updated? arnings per share (EPS) are the total earnings divided by the number of share outstanding. There are three formulas that are used to determine earnings per share. . The earning per share basic formula, the earnings per share, net income formula, and the earnings per share, continuing operations formula. The EPS formulas do not include preferred dividends outside of continued operation and net income. In the United States, the Financial Accounting Standards Board requires the earnings per share be recorded on the company's income statement. They require EPS records on net income, continuing operations, discontinued operations, and extraordinary items. It should all be reported on the Income statement
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EPS stands for Earning per share. This is exactly what you have earned one share of the particular company. This is a standard process for defining whether the company is progressing or in stagnation. In stock market this is one of the criteria for share price listing.
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