EPS

Earnings per share (EPS) can be calculated by dividing the net income of a company by its total number of shares outstanding. The basic formula for calculating EPS is:

EPS = (Net Income – Preferred Dividends) / Weighted Average Shares Outstanding

EPS is an important figure to investors and can tell them how profitable a company is. It is used to compare companies of similar size within the same industry, as well as to track their performance over time.

Analysts also use EPS when determining whether or not to invest in a particular stock. For example, if a company has a higher EPS than its competitors, it may be a better investment.

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