10 stock analysis ratios used by the pros

Earnings per Share (EPS)

Earnings per share is the net profit per share outstanding. It is used to judge the profitability of a single company and is a key element in the Price-to-Earnings ratio. EPS can be calculate using two methods; basic and diluted. Diluted EPS takes into consideration the impact of warrants, stock options and convertible securities when calculating EPS and is more commonly used.

Formula:

EPS = Net Income/Number of Share Outstanding

Next Ratio

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