Earnings per share

Earnings per share divides profit attributable to ordinary shareholders by the average share count.

It expresses company profit as an amount per share for a reporting period. Diluted earnings per share also considers potential extra shares from instruments such as options. A changed share count can change this figure even when total profit stays the same.

Related terms

• P/E ratio
• Dilution
• Share buyback

Investing glossary

Stock explanations