Earnings Per Share (EPS)

Earnings per share (EPS) is a measure utilized in fundamental analyses to assess the profitability of a company. Fundamental analysis involves evaluating various aspects of a company’s stock, going beyond its earnings alone. By incorporating both earnings and shares, EPS provides valuable insights into how a company’s profits are distributed per outstanding share of stock. The calculation of EPS involves dividing the net income (after accounting for dividends on preferred stock) by the total number of outstanding shares.