Financial Statements
Earnings Per Share
The amount of profit attributed to each share of stock.
Also called: EPS
What it means
Earnings per share, often called EPS, is calculated by dividing company earnings available to common shareholders by the weighted average number of shares outstanding. It shows profit on a per-share basis instead of only at the company level.
Why it matters
Investors often compare EPS trends over time and use EPS in many valuation ratios.