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Glosario de trading

EPS

Fundamental Analysis

Qué significa

Earnings Per Share: a company's net profit divided by its total number of outstanding shares. It shows how much profit is allocated to each share of stock, and is a key input for the P/E ratio.

Ejemplo

A company earns $1 billion in net profit and has 100 million outstanding shares, so its EPS is $10. If the stock trades at $150, the P/E ratio is 15 ($150 divided by $10).

Error común de principiantes

Beginners ignore that EPS can be manipulated by share buybacks. A company can boost EPS without growing profit just by reducing the number of shares outstanding — always check if earnings growth comes from real profit improvements, not just fewer shares.

Términos relacionados

  • P/E Ratio — Price-to-Earnings Ratio: a number that shows how much investors are willing to pay per dol…
  • Dividend Yield — The annual dividend payment per share divided by the stock's current price, expressed as a…

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