Earnings per share, or EPS, is a commonly used financial metric that measures a company's profitability. It is calculated by dividing the company's net income by the total number of outstanding shares. EPS is an important indicator for investors as it provides insight into a company's profitability on a per-share basis. A high EPS indicates a company is generating significant profits, while a low EPS may suggest financial struggles. It is important to note that EPS can be influenced by factors such as stock buybacks and accounting changes. It is a valuable tool in evaluating a company's financial health and potential for growth.
