Profitability

Earnings Per Share, Trailing Twelve Months

EPS

Profit per share: the foundation of valuation

Definition

Earnings Per Share (EPS) is the company's total net profit divided by the number of shares outstanding. TTM stands for Trailing Twelve Months, meaning the actual earnings over the past year.

Net Income ÷ Diluted Shares Outstanding

Example

If Microsoft earns $75B in net income with 7.5B shares outstanding, EPS = $10.00. If the stock trades at $420, the P/E is 42x.

Typical range

Varies wildly by sector.

See it in a Brief