Comparing EPS in absolute terms may not have much meaning to investors because ordinary shareholders do not have direct access to the earnings. Instead, investors will compare EPS with the share ...

Earnings per share is the quotient of a company's net income divided by the number of shares of stock it has outstanding. In other words, EPS is a company's profit expressed on a per-share basis.

A lower earnings yield can mean the stock is overvalued and has less ... Stock ABC trades for $250 and has a trailing 12-month EPS of $12. The stock's P/E ratio is $250 divided by $12, or 20.8 ...

In some cases, a company's dividend may exceed its earnings per share. Many well-known Fortune 500 companies have paid dividends in years where they posted negative EPS.