Investopedia

Continue to Site »

Per Share Basis

Filed Under »
Dictionary Says

Definition of 'Per Share Basis'

A measure used in the financial world to illustrate the quantity of something for one share of a company's stock. Such measures are used in the analysis and valuation of a company. Examples include 'earnings per share', 'cash per share', 'revenue per share' and 'debt per share'.
Investopedia Says

Investopedia explains 'Per Share Basis'

To measure something on a per share basis, take the total quantity of whatever you are measuring and divide it by the number of outstanding shares in the company. For example if the earnings of a company is $2 million and there are 4 million shares, the earnings on a per share basis is $0.50 per share.

Articles Of Interest

  1.

    The 5 Types Of Earnings Per Share

    A look at the five varieties of EPS and what each represents can help an investor determine whether a company is a good value, or not.

  2. Getting The Real Earnings

    EPS helps investors analyze earnings in relation to changes in new-share capital.

  3. If I have a number of stock shares and that company reports earnings of X amount per share, do I receive those earnings?

    Simply? Yes and no.Part of the answer to your question is "no" because when a company reports $X of earnings per share in a quarter, the company is not declaring a dividend to its investors - ...

  4. Diluted EPS

    Find out how and why this performance metric is so valuable in analyzing stock.

  5. What is the difference between weighted average shares outstanding and basic weighted average shares?

    Outstanding shares refers to stock that is currently held by investors, including shares held by the public, and restricted shares that are owned by company officers and insiders. The number ...

  6. How To Evaluate The Quality Of EPS

    Companies can manipulate their numbers, so you need to learn how to determine the accuracy of EPS.

  7. Earnings Per Share Explained

    Earnings per share is one of the most carefully followed metrics in investing. We show you why this ratio matters and how to calculate it.

  8. 6 Bad Stock Buyback Scenarios

    Buying back shares can be a sensible way for companies to use extra cash. But in many cases, it's just a ploy to boost earnings.

  9. What is the weighted average of outstanding shares? How is it calculated?

    The amount of shares outstanding in a company will often change due to a company issuing new shares, repurchasing and retiring existing shares, and other financial instruments such as employee ...

  10. When computing the PEG ratio for a stock, how is a company's earnings growth rate determined?

    Remember that the price/earnings to growth ratio (PEG ratio) is simply a given stock's price/earnings ratio (P/E ratio) divided by its percentage growth rate. The resulting number expresses how ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center