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You have completed Financial Statement Basics!
You have completed Financial Statement Basics!
Preview
Earnings Per Share ("EPS"), Price Earnings ("PE") multiples, and why some people focus on Net Income vs EBITDA and vice versa.
Further reading on different profit lines
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[SOUND] Historically,
earnings per share, or EPS,
0:00
was a big number that investors tracked,
and it still is.
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The way earnings per share is calculated
is based off of net income or net profit.
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You take that number and divide it by
the total number of shares outstanding.
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There are other things you may need to
take into account when calculating EPS,
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for example, preferred dividends or
potential stock dilution.
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But we're gonna skip over that,
as it's not a big deal for this lesson.
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