• See Earnings Per Share.
| ||Embedded terms in definition|
| ||Earnings per share|
| ||Referenced Terms|
| ||Ace: See Analysts' Consensus Eps.|
| ||Analysists' consensus eps: Abbreviated ACE. An estimate of Eps derived by tabulating the projections of Wall Street analysts who follow a particular company.|
| ||Average dividend yield: Combined with price appreciation, the average dividend yield (if any) can show a potential total return from a security investment. The formula for the average dividend yield is:|
(Eps *Average Payout) / current price
where EPS = Estimated Future High EPS / (1 + EPS Growth) 2.5
Companies that pay a dividend will generally increase the dividend as EPS grow. Share price growth will usually follow the dividend increases, and thus keep dividend yield at a constant percentage.
| ||Average percent payout: The average of the percentage of a company's profits paid out in dividends to shareholders, typically calculated over the last five years. A high percent payout can be a danger sign. Recent payout figures higher than 50%, and higher than the average payout, may forewarn of a dividend cut. A dividend cut would likely cause the stock price to fall. Generally, the higher the payout ratio, the lower the expected growth rate for the company's Eps in the future.|
Sometimes, although the dividend payout is more than earnings, the company has strong cash flow and can cover the dividend in the short term. However, a company paying out dividends in excess of earnings on a recurring basis is a risky investment.
| ||Basic earnings per share: Basic Eps. Earnings per share (EPS) calculated without regard to any contingent securities.There are two kinds of Earning per Share (Eps): basic and diluted. Basic shares are fewer in number than diluted. For Basic EPS, net income is divided by the number of common shares outstanding. This usually produces a larger EPS number than when using a diluted number of shares. Be consistent in the kind of EPS you use. See also: Diluted Earnings Per Share.|
| ||Related Terms|
| ||Analysists' consensus eps|
Business model eps projection
Ebit eps approach
Pe ratio to eps growth