A profitability metric calculated by dividing a company's net income by the number of outstanding shares. It represents the portion of profit allocated to each share of stock and is a key measure used in stock valuation.
Compound phrase combining 'earnings' (from Old English 'earnian' meaning to deserve/merit), 'per' (Latin for through/by means of), and 'share' (from Old English 'scearu' meaning portion). The metric became standardized in early 20th century as public stock ownership expanded.
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