Sales and profit
Earnings per Share (EPS)
The company's net income divided by the number of its shares. It shows how much of the profit belongs to each share.
Why does it matter?
It connects the company's profit to a single share, which is what investors buy. The P/E ratio is built from it.
How do I read it?
Look at its trend over several years. EPS can rise because profit grew or because the company bought back shares, so check net income too.
How StockLab calculates it
Net income ÷ diluted number of shares, as reported by the company.
Example
$10 billion of net income divided by 2 billion shares is $5 of earnings per share. If buybacks cut the shares to 1.9 billion, EPS rises to about $5.26 with the same profit.
On StockLab
StockLab uses earnings per share over the last 12 months to calculate the P/E ratio.