EPS (Earnings Per Share)

EPS is a company's total profit divided by the number of shares outstanding (shares of stock that exist). It tells you how much profit each share of stock represents. You'll see EPS quoted everywhere—earnings reports, stock screeners, analyst ratings—because it's one of the simplest ways to compare how profitable a company really is. 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. If a competitor made the same profit but has 200 million shares outstanding, their EPS is only $0.50—showing how the same profit gets spread thinner across more shares.