Earnings Per Share (EPS) is a company's net income divided by its weighted average number of outstanding shares. It measures the profit allocated to each share of common stock and is a widely referenced figure in stock valuation.
A company with $500M net income and 250M shares outstanding has an EPS of $2.00. If the P/E ratio is 25x, the implied share price is $50.
EPS is one of the most widely followed financial metrics in stock valuation. It directly connects to the P/E ratio, the most common relative valuation method. However, EPS can be manipulated through accounting choices and share buybacks.
While MiniValuator primarily uses free cash flow for DCF, EPS data is displayed alongside other fundamental metrics when auto-filling stock data.
Pronto para aplicar este conceito? Experimente a Calculadora DCF do MiniValuator — calcule o valor intrínseco de qualquer ação americana em menos de 60 segundos.
