EPS stands for Earning per Share. It is the net profit after taxes/distributable profits for equity shareholders.

The total amount of such profits when divided by the total amount of outstanding shares gives us the Earning per each outstanding share.

EPS stands for Earning Per Share.

In other words, the Portion of Company’s Profit allocated to each outstanding Share.

E.g. During the F.Y. Company earned a profit of RS. 264300 & its outstanding shares are 100000 then EPS will be 26430000/100000=2.64

Earnings mean profits. Before you buy a share, this is the first figure that you need to check. Increasing earnings generally leads to a higher stock price. Most of the high earning companies also pay regular dividend to its shareholders. Analyzing Earnings is the first most important step for investors because they give an indication of the company’s expected future dividends and its potential for growth and capital appreciation.

Earnings per share  is the monetary value of earnings per each outstanding share of a company’s common stock.