Definition
EPS is a financial metric that represents the portion of a company�s profit allocated to each outstanding share of common stock. It is calculated as: EPS=Weighted Average Shares OutstandingNet Income?Preferred Dividends?
Related Services
Financial reporting, investment analysis, and equity research services use EPS to assess a company's profitability per share.
Problem and Application
EPS is commonly used by investors to measure a company�s profitability, but it can be affected by changes in the number of shares outstanding or one-time events.
Conclusion
EPS is a key indicator of company profitability, but it should be assessed in context, with attention to factors like share dilution or special items.
