In financial analysis, what does EPS stand for?

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Earnings per share, often abbreviated as EPS, is a key financial metric used by investors and analysts to assess a company's profitability on a per-share basis. It is calculated by dividing the net income of the company by the number of outstanding shares of common stock. This ratio provides insight into how much money a company earns for each share of its stock, making it a valuable tool for comparison across different companies in the same industry.

EPS is crucial for assessing a company’s financial health and is often used in conjunction with other ratios to analyze a company's performance. Higher EPS typically indicates better profitability and can positively influence the stock's market value. Investors often pay close attention to trends in EPS over time, as consistent growth can signal a solid investment opportunity.

The other options do not represent widely recognized financial metrics. Equity price standard, estimated price securities, and excess profit share do not hold established meanings in financial analysis, making earnings per share the most appropriate answer in this context.

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