What is EPS?
Earnings Per Share: a company's net profit divided by outstanding shares.
In Depth
Earnings Per Share (EPS) measures a company's profitability on a per-share basis. It's calculated by dividing net income (less preferred dividends) by the weighted-average outstanding share count. EPS feeds directly into the P/E ratio and is a primary input to most equity valuation models.
Example
A company with $10 billion in net income and 2 billion shares outstanding reports EPS of $5.