EPS
Also called Earnings per share
Earnings per share: a company's yearly profit divided by the number of its shares.
EPS, or earnings per share, is a company’s profit for the year split across all its shares. If a business earns more while its share count stays the same, its EPS rises. It’s the bottom half of the P/E ratio, and one of the first numbers in any company’s results.
How it's calculated
EPS = yearly profit / number of shares
Questions people ask
What is the full form of EPS?
EPS stands for earnings per share. It's a company's profit for the year divided by the number of its shares, showing how much profit belongs to each share.
How is EPS used?
It's the E in the P/E ratio. Divide the share price by EPS and you get the P/E, which shows how much you're paying for each rupee of profit. A rising EPS over years usually means the business is earning more per share.
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