Earnings Per Share (EPS) Explained | Financial Ratios In Investing

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Earnings per share (EPS) is a company's net profit divided by the number of common shares it has outstanding.

EPS indicates how much money a company makes for each share of its stock and is a widely used metric for estimating corporate value.

A higher EPS indicates greater value because investors will pay more for a company's shares if they think the company has higher profits relative to its share price.

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