Earnings per Share

The term earnings per share (EPS) denotes a measure used to find the value which a public company delivers to its shareholders. EPS indicates the amount of profit which each share making up the company earns over a given time frame.

Earnings per share is found by dividing a company’s profit (net income minus preferred stock dividends) by the number of ordinary shares which form its outstanding stock (stock held by shareholders as opposed to treasury stock).

This measurement provides a good indicator of the intrinsic value of shares and the dividends which shareholders can expect to receive from a company.

More on this topic:
Swiss stock broker comparison

About moneyland.ch

moneyland.ch is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 80 unbiased comparison tools and calculators are available on moneyland.ch, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.