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Definition

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E

Earnings per share (eps)

Earnings per share (EPS): Earnings per share is the part of a company's profit that is represented in per share basis. It is dependent on the net profit and the number of common shares outstanding. EPS = (Net Income − Preferred Dividends)/End-of-Period Common Shares Outstanding. If a company is making losses, then the EPS will be in negative.

Ebitda margin

EBITDA margin: EBITDA stands for earnings before interest, taxes, depreciation, and amortization. EBITDA is used to compare companies operating profitability before non-cash expenses such as depreciation and amortization and non-operating expenses such as interest. EBITDA margin is a measure of a company's operating profit as a percentage of its revenue. EBITDA margin = (earnings before interest and tax + depreciation + amortization) / total revenue. EBITDA margin measures a company’s profitability from operations. Higher EBITDA margin indicates that the company’s operating expenses before non-cash expenses such as depreciation and amortisation are lower in relation to total revenue.

Eps growth

EPS growth: Earnings per share (EPS) growth is the rate of growth of a company's earnings represented on a per share basis. It is measured as a percentage for a specific period. Stocks with higher EPS growth rates are generally seen to command higher PE than those with slower growth rates. However, EPS growth rate alone does not reveal much about quality of earnings.