Per Share Basis

AAA

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 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.

RELATED TERMS
  1. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  2. Outstanding Shares

    A company's stock currently held by all its shareholders, including ...
  3. Cash Earnings Per Share - Cash ...

    A measure of financial performance that looks at the cash flow ...
  4. Cash Flow Per Share

    A measure of a firm's financial strength, calculated as: Cash ...
  5. Volume Weighted Average Price - ...

    A trading benchmark used especially in pension plans. VWAP is ...
  6. Quantitative Analysis

    A business or financial analysis technique that seeks to understand ...
RELATED FAQS
  1. What's the difference between free cash flow and operating cash flow?

    The calculation used to determine free cash flow is net income plus amortization and depreciation minus change in working ... Read Full Answer >>
  2. If I have a number of stock shares and that company reports earnings of X amount ...

    Simply? Yes and no. Part of the answer to your question is "no" because when a company reports $X of earnings per share ... Read Full Answer >>
  3. What is the difference between Macaulay duration and modified duration?

    The forward price to earnings (P/E) is the measure of a company's P/E ratio using its expected earnings. You could calculate ... Read Full Answer >>
  4. Why is a company's diluted EPS always lower than its simple EPS?

    A company's diluted earnings per share is lower than its basic earnings per share because diluted earnings per share takes ... Read Full Answer >>
  5. What is the difference between earnings per share (EPS) and diluted EPS?

    Earnings per share (EPS) and diluted EPS are profitability measures used in fundamental analysis of companies. EPS only takes ... Read Full Answer >>
  6. What does it signify about a company if there is a large difference between its EPS ...

    If there is a large difference between a company's basic earnings per share (EPS) and its diluted EPS, it signifies that ... Read Full Answer >>
Related Articles
  1. Markets

    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. Options & Futures

    Getting The Real Earnings

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

    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.
  4. Fundamental Analysis

    Assess Shareholder Wealth With EPS

    Find out if management is doing its job of creating profit for investors.
  5. Fundamental Analysis

    Yield Investing: Dividend, Earnings And FCF

    There are numerous ways to value investments, and many investors prefer a specific valuation method. Yield investing is one way to value a stock by comparing the current price to various factors. ...
  6. Fundamental Analysis

    Diluted EPS

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

    How To Evaluate The Quality Of EPS

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

    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.

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center