Terminology - Share Market- EPS - Earnings per Share

EPS - Earnings per Share

Total earnings divided by the number of shares outstanding = EPS

Total Earnings / No. of Shares Outstanding - EPS

Companies often use a weighted average of shares outstanding over the reporting term (Period that is 3 month, 6 month, One year, 3 year etct..).

EPS can be 3 types - trailing EPS, current EPS, forward EPS



EPS can be calculated for the previous year ("trailing EPS"), for the current year ("current EPS"), or / for the coming year ("forward EPS").

last year's EPS would be actual, while current year and forward year EPS would be estimates.


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