EPS (Earnings Per Share)

EPS is a company's total profit divided by the number of shares (ownership pieces) it has outstanding. It tells you how much profit is attributable to each share you own. You'll see EPS quoted constantly when researching stocks—it's one of the first numbers analysts look at because it shows whether a company is actually making money and whether that profit is growing. A higher EPS generally means the company is more profitable per share. For example, if TechCorp made $100 million in profit and has 50 million shares outstanding, its EPS is $2 per share. When comparing two companies, EPS helps you see which one generates more earnings relative to its share count, though it's best used alongside other metrics rather than on its own.