The Basic Earnings Per Share

The Basic Earnings Per Share (EPS) metric is the ratio of a company’s net assets to the outstanding shares of common stock.

How to Use

The Basic Earnings Per Share reflects the current value of assets each share of stock owns. The higher the net worth per share, the more the shareholder owns the value of the asset per share; the lower the net worth per share, the less the shareholder owns the value of the asset per share.

The Basic Earnings per Share = Net Income / The Number of common shares outstanding