Earnings Per Share (EPS)
Definition
A company’s net profit divided by the number of outstanding shares of common stock. Indicates profitability on a per-share basis.
Formula / Rules
$ \text{EPS} = \frac{\text{Net Income} - \text{Preferred Dividends}}{\text{Average Shares Outstanding}} $
Example
$20 million net income and million shares equals $2.00 EPS. Book Value Category: Equity / Valuation Metric Definition: The net asset value of a company, calculated as total assets minus total liabilities. Often used to as
Frequently Asked Question
What is Earnings Per Share (EPS) in trading?
A company’s net profit divided by the number of outstanding shares of common stock. Indicates profitability on a per-share basis.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.