{"id":3898,"date":"2023-03-03T21:25:18","date_gmt":"2023-03-03T21:25:18","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/earnings-per-share-eps\/"},"modified":"2023-03-03T21:25:18","modified_gmt":"2023-03-03T21:25:18","slug":"earnings-per-share-eps","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/earnings-per-share-eps\/","title":{"rendered":"Earnings Per Share (EPS)"},"content":{"rendered":"<p>\nEarnings per share or EPS is a measure for assessing the profitability of a company. EPS is the value of earnings per outstanding shares of a company. It shows the company\u2019s profitability by displaying the money made per share. EPS is achieved by dividing a company\u2019s net profit by the number of its shares outstanding. A company with high EPS is considered more profitable than a company with low EPS.<br \/>\nUpdated EPS of a company can be checked every quarter and also through annual results.<br \/>\nEPS = Net Income (after Tax)\/Total Number of shares outstanding<\/p>\n<h2>Importance of EPS<\/h2>\n<p>Importance of EPS:<br \/>\n1. EPS helps in comparing different companies from the same industry to pick the better investment option.<br \/>\n2. EPS is an important metric to gauge a company\u2019s present and anticipated future value.<br \/>\n3. EPS is used in financial ratios, such as the P\/E ratio to understand a company\u2019s value.<\/p>\n<h2>Limitations of EPS<\/h2>\n<p>Limitations of EPS are:<br \/>\n1. EPS can be manipulated by certain businesses to show more profits.<br \/>\n2. Cash Flow is not used for EPS calculation and thus it does not show the accurate solvency picture.<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Earnings per share or EPS is a measure for assessing the profitability of a company. EPS is the value of earnings per outstanding shares of a company. It shows the company\u2019s profitability by displaying the money made per share. EPS is achieved by dividing a company\u2019s net profit by the number of its shares outstanding. [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3898","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3898","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=3898"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3898\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=3898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=3898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=3898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}