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.

Using the example above, a new investor might expect ... share price by the most recently available 12 months of earnings per share. (Earnings per share are typically reported quarterly.) ...

If a company’s stock is trading at $100 per share, for example, and the company generates $4 per share in annual earnings, the P/E ratio of the company’s stock would be 25 (100 / 4).

Earnings Per Share represents the portion of a company's profit allocated to each outstanding share of common stock. It's calculated by the net income (reported or estimated) for a period divided ...

To calculate the PEG ratio, first, you’ll need to compute a stock’s P/E ratio. This is simply a stock’s price divided by its earnings per share. For example, if a stock trades at $50 and generates $2 ...