Earnings Per Share (EPS)
Financial term in the Investing category
Definition
A company's net profit divided by the number of outstanding shares. Used to measure profitability and calculate the P/E ratio. Higher EPS generally indicates better profitability.
Frequently Asked Questions
What is Earnings Per Share (EPS)?
A company's net profit divided by the number of outstanding shares. Used to measure profitability and calculate the P/E ratio. Higher EPS generally indicates better profitability.
Why is Earnings Per Share (EPS) important in personal finance?
Earnings Per Share (EPS) is an important investing concept that helps individuals make better financial decisions. Understanding Earnings Per Share (EPS) can improve your financial planning and help you achieve your money goals.
How does Earnings Per Share (EPS) relate to Stock?
Earnings Per Share (EPS) and Stock are related financial concepts. A share of ownership in a company. When you buy stock, you become a partial owner with potential to earn money through price appreciation and dividends.
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