(EPS) Earnings Per Share

fullname: Earnings Per Share
formula

(1)   \begin{align*}EPS = \frac{\text{net income} - \text{dividend}}{\text{average outstanding shares}}\end{align*}

example

a company whose shares are trading at $1 and has earnings per share of 10 cents has a PE ratio of 10.
100 (cents) ÷ 10 (cents) = 10
usage
determining a share’s price.
attention
earnings manipulation