EPS (Earnings Per Share)
A company's net profit divided by its number of shares.
What it means
EPS shows how much profit a company generates for each outstanding share. It is the E in the P/E ratio and one of the most-watched numbers each earnings season, because rising EPS usually drives a rising share price over time.
Formula
EPS = Net Income ÷ Shares Outstanding
Example
A company earning $1 billion with 500 million shares has an EPS of $2.00.
What is a good EPS?
Higher and consistently growing EPS is better. Watch whether the growth comes from real profit or from share buybacks, which shrink the share count and lift EPS artificially.
See it on real stocks
Every stock analysis page shows EPS alongside the other key metrics: