Earnings Per Share (EPS Ratio)

Implies earnings of a company for 1 share of its stock. The higher the earnings the better. For instance, Stock A with a stock price of $441.81 and an EPS of 41.89 implies that each share of stock worth $441.81 resulted in an Earnings of $41.89. Some technology or IPO(Initial Public offering) stocks have negative EPS but that doesn't necessarily mean that they are bad, especially if the market is expecting higher future revenue growth.




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