Earnings per Share (EPS)
Simple Structure--Single EPS only
- Basic Earning Per Share (BEPS) Was known as simple earnings per share until very recently.
Net income - P/S dividends = BEPS
Weighted average # shares outstanding
- P/S dividend is current year only (no arrearages).
- If net loss then P/S dividend increases the loss.
- Letís examine the denominator first.