Earnings per share is a ratio used in financial analysis to calculate a company's earnings attributable to each share of its stock. It is calculated by dividing a company's net earnings by its total number of shares outstanding. There are two main types of earnings per share: basic EPS, which only considers shares currently issued, and diluted EPS, which considers additional shares that may be issued in the future from convertible securities. The International Accounting Standards Board developed a standard to regulate the consistent calculation of EPS across companies.