Earnings Per Share is the money the company made for each share of company stock. Divide the company's Net Income with to total number of shares outstanding and we get Earnings Per Share.
A company with a Durable Competitive Advantage will have a rising Earnings Per Share for the past 10 years. Go to www.msn.com to check the 10-Year Summary for an upward trend. Companies that are in fierce competition will have an erratic trend.
Examples for an Upward Trend
10-Year Summary for the Coca-Cola Company:
Source: MSN Money
10-Year Summary for Wal-Mart:
Source: MSN Money
Examples for an Erratic Trend:
10-Year Summary for Ford Motors:
Source: MSN Money
10-Year Summary for Yahoo:
Source: MSN Money
