and it is used in the calculation of other popular valuation metrics like the price-to-earnings (P/E) ratio. To calculate earnings per share, divide a company’s annual or quarterly profit by the ...

P/E = Share Price / Earnings per Share Alternatively ... One analyst might take a high ratio (along with other relevant data) to mean that a company is overvalued, while another might interpret ...

By dividing a company's share price by its earnings per share, an investor can see the ... Comparing EPS in absolute terms may not have much meaning to investors because ordinary shareholders ...

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.