Earnings Per Share
Earnings Per Share (EPS) measures a company’s profit for each outstanding share, calculated as EPS = Net Income / Number of Outstanding Shares. EPS reflects a company’s profitability per share, serving as an indicator of financial health and efficiency. A higher EPS suggests stronger profit generation, while a lower EPS may signal weaker performance. Beyond profitability, EPS is a widely used valuation metric, helping investors assess a stock’s worth and growth potential.
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