DeutschWhat is Earnings Per Share (EPS)?
Earnings per share (EPS) is a company’s profit divided by the outstanding shares of its common stock.
Explanation:
EPS indicates a company’s profitability and is often used by investors to gauge the financial health and performance of a company.
Practical Example of Earnings Per Share (EPS):
If a company has a net income of $10 million and 5 million outstanding shares, its EPS would be $2.
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