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CFDs and forex (FX) are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider. 
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CFDs and forex (FX) are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX, or any of our other products work and whether you can afford to take the high risk of losing your money.
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Glossary

Earnings per share (EPS)

Definition

EPS is the company's profit divided by the number of its outstanding shares.
If a company earning USD 10 million in one year had USD 10 million shares of stock outstanding, its EPS would be USD 1 per share.
Companies often use a weighted average of shares outstanding over the reporting term when calculating EPS.

What is earnings per share (EPS)?

Earnings per share (EPS) is a financial ratio that calculates the portion of a company's profit allocated to each outstanding share of common stock. It's a key indicator of a company's profitability and is calculated by dividing the company's net income by the number of outstanding shares.

Why are earnings per share (EPS) important to consider when trading?

EPS is a widely used metric in stock analysis, as it provides a direct measure of a company's profitability on a per-share basis. Higher EPS indicates greater profitability and is often seen as a positive sign by investors. Traders use EPS to gauge a company's financial health and compare its performance with peers. It's also a key component in calculating the price-to-earnings (P/E) ratio, another important investment valuation metric.

Related Items

Dividend Price-to-earnings (PE) ratio Stocks Shares
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