EPS (Earnings Per Share)

Category: finance

A company’s profit divided by the outstanding shares of its common stock.

EPS is the "per-share profitability" metric. It serves as an indicator of a company’s profitability, as it shows how much profit is allocated to each share. It is one of the most significant variables in determining a stock’s price and calculating the P/E ratio.

Common Examples

• Investors scrutinize EPS growth to determine if the company is effectively translating revenue into shareholder value.
• When a company reports an EPS that beats analyst expectations, it often triggers a positive move in the stock price.