What is the earnings per share (EPS)?

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What is the earnings per share (EPS)?

Earnings per share (EPS) is a financial metric that indicates the profitability of a company. It is calculated by dividing the company's net income by the number of outstanding shares of its common stock. EPS is an important measure for investors as it helps them assess the company's profitability on a per-share basis and compare it with other companies in the same industry.