earnings per share (EPS)

Earnings Per Share (EPS) is a financial metric that shows how much profit a company makes for each share of its stock. It's calculated by dividing the company's net income (profit after expenses) by the total number of outstanding shares. EPS provides investors with an idea of the company's profitability on a per-share basis, making it easier to compare performance across companies or track growth over time. A higher EPS generally indicates better profitability, but it should be considered alongside other factors for a complete investment assessment.