what is eps

EPS stands for Earnings Per Share, which is a financial metric used to measure a companys profitability. It is calculated by dividing a companys net profit by the number of outstanding shares of its common stock. EPS is a widely used metric for estimating corporate value and is commonly used to price stocks. A higher EPS indicates greater value because investors will pay more for a companys shares if they think the company has higher profits relative to its share price. EPS can be arrived at in several forms, such as excluding extraordinary items or discontinued operations, or on a diluted basis. EPS is reported in Consolidated Statements of Operations (income statements) in both annual and quarterly SEC filings.