What is EPS (Earnings Per Share)?
Earnings Per Share (EPS) is a key financial metric that measures a company’s profitability on a per-share basis.
It represents the portion of a company’s net income that is allocated to each outstanding share of common stock.
EPS is widely used by investors and analysts to assess a company’s financial performance and estimate its market value.
EPS=(Net Income−Preferred Dividends)Weighted Average Common Shares Outstanding
A higher EPS indicates greater profitability and is often seen as a positive sign for shareholders.
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