Knowing a company’s profits is super important as an investor 🤓
Earnings Per Share give you quick insight into a company’s profits compared to its stock price 🤑
Earnings Per Share (EPS) equals total profits divided by total number of shares 📈
The result tells us EXACTLY how much money the company makes in profit for every share! 🤑
💡Remember: A “share” is 1 piece of stock!
The higher the EPS, the more money the company is making per share 💰
So, if EPS is $100, then the company makes $100 per 1 share 🤑
EPS can be calculated using either the company's yearly or quarterly profits 📅
EPS can be affected by things like company expenses, taxes, and dividends paid to shareholders 💸
Investors use EPS to compare the profitability of different companies in the same industry 🤑
To find a company’s EPS, look no further than your Bloom app 🌹
Just scroll down to the "Earnings" section on your favorite stock 🤩
Try it with Apple!
Knowing EPS can help you pick profitable companies at a good price 🤑
Next, we'll learn about one of the most important numbers you need to know as an investor! ➡️