Earnings Per Share (EPS) is a company's net profit divided by its total number of outstanding shares. It represents how much profit the company makes per share of stock. EPS is one of the most important metrics for valuing a stock. Rising EPS over time is a strong indicator of a healthy, growing business.
Related Terms
The Price-to-Earnings (P/E) ratio measures how much investors are paying for each dollar of a compan...
The Price-to-Sales (P/S) ratio compares a company's stock price to its annual revenue per share. It ...
Book value is a company's total assets minus its total liabilities — essentially what would be left ...
Free cash flow (FCF) is the cash a company generates from its operations after spending on capital e...
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