Valuation Metrics
EPS
Earnings Per Share
Definition
Net Income ÷ Shares Outstanding = Profit per share
Explanation
EPS tells you how much profit a company made for each share of stock. Higher EPS generally means better profitability. Comparing EPS growth year-over-year shows whether the company's earnings are improving. It's the "E" in P/E ratio.
Example
Net income $10 billion ÷ 1 billion shares = EPS $10