Earnings per share, or EPS, is a ratio that compares a company’s profits with the number of shares outstanding to evaluate profitability.

EPS is calculated by taking a company’s net income and subtracting dividends, and then dividing that number by the number of outstanding shares.
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0:00 Earnings Per Share (EPS) Definition
0:30 EPS Formula
0:50 Price to Earnings (P/E) Ratio
1:01 Shortcomings of Earnings Per Share
1:24 Adjustments in EPS Calculations
1:36 EPS Question & Application
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