EPS (Earnings Per Share) is a financial metric that shows the portion of a company’s profit allocated to each outstanding share of common stock. It is calculated by dividing the company’s net income (minus dividends on preferred stock) by the average number of outstanding shares during a specific period. EPS is commonly used by investors to assess a company’s profitability and to compare the performance of different companies. A higher EPS indicates greater profitability and is often seen as a positive sign for shareholders.
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