EPS

What does EPS stand for in finance?

Earnings per share

EPS, or earnings per share, is a measurement of a company's profit in comparison to its share price. Investors and financial analysts use a company's EPS to help them decide whether purchasing the company's stock is a good investment.

To calculate a company's EPS, you divide the company's net income (minus dividends) by its number of outstanding shares. The higher a company's EPS is, the more profitable it is (in most cases). However, while comparing companies' EPSes can be useful when selecting investments, it should not be the sole basis of your investment decision.

Example

I love watching Alphabet's EPS climb higher and higher.
EPS isn't everything when it comes to investing

EPS isn't everything when it comes to investing

Related Slang

Categories

Updated April 14, 2022

EPS definition by Slang.net

This page explains what the acronym "EPS" means. The definition, example, and related terms listed above have been written and compiled by the Slang.net team.

We are constantly updating our database with new slang terms, acronyms, and abbreviations. If you would like to suggest a term or an update to an existing one, please let us know!