What is Earnings per Share (EPS)?

**Earnings per Share (EPS)** is a financial measure that shows how much profit a company makes for each share of its stock. It tells investors how much money the company is earning on a per-share basis, which can be useful for comparing profitability between companies or evaluating a company's performance over time. In simpler terms, EPS is like breaking down the company’s total profit into smaller pieces, with each piece representing the value for one share of stock. The higher the EPS, the more profitable the company is per share, which could indicate a better-performing company.