What does EPS mean?

EPS in finance stands for Earnings Per Share. It is a financial metric that represents the portion of a company's profit allocated to each outstanding share of common stock. It is calculated by dividing the company's net income by the total number of outstanding shares. EPS is an important measure of a company's profitability and is often used by investors to evaluate the company's financial performance and to make investment decisions. A higher EPS indicates that the company is generating more profit per share, which can be a positive indicator for potential investors. EPS is also used in various financial ratios and analysis to assess a company's valuation and profitability. Overall, EPS is a key indicator of a company's financial health and is closely monitored by investors, analysts, and financial professionals.