---
title: "Definition of EPS"
url: https://signalscreener.fr/definition/eps/
markdown_url: https://signalscreener.fr/definition/eps.md
description: "EPS shows how much profit the company earned per share of stock."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "EPS"
  - "Earnings Per Share"
translations:
  es: https://signalscreener.fr/es/definition/eps.md
  fr: https://signalscreener.fr/fr/definition/eps.md
  pt: https://signalscreener.fr/pt/definition/eps.md
  zh: https://signalscreener.fr/zh/definition/eps.md
---

# Earnings Per Share

## What is EPS?

EPS shows how much profit the company earned per share of stock. It's the bottom line profit divided among all shareholders.

## Think of it like this

A lemonade stand with 10 partners (shares) makes $100 profit. Each partner's share is $10 (EPS). Next year profit is $150, so EPS grows to $15!

## Formula

```
EPS = Net Income / Shares Outstanding
```

- **Net Income**: Total profit after all expenses
- **Shares Outstanding**: Total shares in market

## Why it matters

- Most important profitability metric
- Drives stock price over time
- Shows earnings growth trend
- Used to calculate P/E ratio

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| Negative | Loss | Company losing money |
| $0-1 | Low | Small profits per share |
| $1-5 | Moderate | Decent profitability |
| $5-20 | High | Strong earnings |
| > $20 | Very High | Exceptional profitability |

## Real-world example

Apple EPS: $6 - highly profitable. Netflix EPS: $12 - strong earnings. Startup EPS: -$2 - still losing money. Berkshire Hathaway EPS: $20,000+ - few shares outstanding.

## Things to watch out for

- Can be manipulated with buybacks
- One-time items distort EPS
- Compare growth rate, not absolute value
- Use diluted EPS for accuracy

---

This is educational content, not financial advice.

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