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Earnings Per Share

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If equity is the ownership of a business, then the earning that the business generates is the single most important aspect that an owner wants to track. EPS, or Earnings Per Share is exactly that. If there are earnings there can be a distribution of those earnings or profits to the owners , that is, shareholders. How EPS is calculated, how Dividends are determined and what happens to profits if they are not paid out to owners as Dividends? In under 4 minutes, quickly learn the heart of what makes equity tick. EPS is after all at the core of the value of a share. Key Words: Equity, Earnings Per Share, Valuation.

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