Calculate Earnings Per Share
EPS Evaluation Guide
| EPS Trend | What It Means | Investor Implication |
|---|---|---|
| Rising EPS | Increasing profitability or share buybacks | Generally positive; check revenue growth too |
| Stable EPS | Consistent earnings | May indicate mature business; evaluate yield |
| Declining EPS | Falling profits or share dilution | Investigate cause; may affect dividend |
| Negative EPS | Company is losing money | High risk; no earnings for dividends |
| Basic > Diluted | Significant dilutive securities exist | Use diluted EPS for conservative analysis |
