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Earnings Per Share (EPS) Definition

Earnings per share is a company's net profit divided by its number of outstanding shares.

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What is Earnings Per Share?

EPS is a widely used measure of profitability on a per-share basis and is often compared across periods or peers.

It is a key input in valuation metrics such as the price-to-earnings ratio.

Example of Earnings Per Share

A company earning $10 million in net profit with 5 million shares outstanding has an EPS of $2.

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