Financial Analysis

Basic Earnings Per Share (EPS)

January 29, 2021
Financial Analysis

Current Market Value

January 30, 2021

Share

It stands for basic earnings per share; the ratio of net income available to common shareholders to common shares outstanding:

Basic Earnings Per Share

This ratio doesn’t take into account the additional shares that will be issued on stock options whose holders choose to exercise. Furthermore, it doesn’t recognize potential dilution effects of convertible bonds and convertible preferred stock that have been issued by a company.

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