Earnings per share, or EPS, is a company's net income divided by the number of outstanding shares. It shows how much profit is earned for each share you own. EPS is one of the most common metrics investors use to evaluate a company's profitability.
A company earns $50 million in net profit and has 10 million shares outstanding. Its EPS is $5 per share. This means the company generated $5 in profit for each share that exists.
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