Roadmap · Level 3
EPS (Earnings Per Share)
How much profit a company makes, divided across each share of stock.
EPS shows how much of a company's profit belongs to each individual share. It's calculated by taking total profit and dividing it by the number of shares that exist.
Picture it
Total profit
$10,000,000
÷
1,000,000 shares
= $10 of profit for each share
If a company earns $10 million in profit and has 1 million shares, its EPS is $10. Higher EPS generally signals a more profitable company — but it's most meaningful when compared over time (is it growing?) or against similar companies, not as a number on its own.