The earnings per share formula is useful for valuing stocks. It’s a key part of the widely-used price-to-earnings ratio. And by gaining a better understanding of these concepts, you can make better ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

Writer Gertrude Stein once said, "A rose is a rose is a rose," but the same cannot be said about earnings per share (EPS). While the math may be simple, there are many varieties of EPS being used ...

EPS, which stands for earnings per share, represents a company's annualized net profit divided by the number of common shares of stock it has outstanding. Because it's a measure of profitability on a ...