Скачать или смотреть 💹 Earnings Per Share (EPS) Explained: The Key to Evaluating Profitability

Earnings Per Share, or EPS, is one of the most important tools investors use to measure a company’s profitability on a per-share basis. Unlike total net income, which can be misleading for companies with different numbers of shares, EPS shows how much profit each individual share generates. Calculating it is simple: take the company’s net income, subtract any preferred dividends, and divide by the weighted average of common shares outstanding.

Reported quarterly and annually, EPS helps investors compare companies fairly and gauge operational performance. A rising EPS usually signals strong management, growing demand, and efficient operations, while declining or inconsistent EPS can reveal underlying problems or poor strategy. For value investors, EPS isn’t the only metric, but it’s an essential starting point for understanding a company’s financial health and potential for long-term growth.