Earnings per Share

A company's earnings per share (EPS) is its net profit divided by the number of ordinary shares outstanding. A company which earned net income of $10 million in the previous financial year and has two million shares outstanding has an EPS of five dollars. Historical or trailing EPS are earnings per share for the last available financial year or quarter. Forecast EPS are earnings as forecast by analysts. EPS is a key component of the p/e ratio.