GlossaryPer share

Per share

"Per share" turns any company-wide financial figure, profit, cash flow, book value, revenue, into a number that applies to a single share of stock, by dividing it by the number of shares outstanding. It lets an investor compare a company's performance directly against its share price, which is itself already a per-share number.

Earnings per share (net income divided by shares) is the most common example, but the same idea applies to other measures too: free cash flow per share, book value per share, revenue per share, and dividends per share. Whichever figure it's attached to, "per share" always means the same thing, take the company-wide number and divide it by shares outstanding.