EARNINGS PER SHAREearnings per share. Corporations. A measure of corporate value by which the corporation’s net income is divided by the number of outstanding shares of common stock. ? Investors benefit from calculating a corporation’s earnings per share, because it helps the investor determine the fair market value of the corporation’s stock. ¡ª Abbr. EPS.
fully diluted earnings per share. A corporation’s net income ¡ª assuming that all convertible securities had been transferred to common equity and all stock options had been exercised ¡ª divided by the number of shares of the corporation’s outstanding common stock.