What is Earnings Per Share?
A definition of Earnings Per Share
“Earnings per share (EPS) is a financial indicator that shows how much profit a company makes for each share of its stock. It is calculated by dividing net income by the number of outstanding shares.”

Business Glossary > What is Earnings Per Share?
Examples of Earnings Per Share in a Sentence:
Investors often look at earnings per share to gauge a company’s profitability.
The company’s earnings per share increased significantly this quarter.
Higher earnings per share indicate a financially healthy company.
Why is Earnings Per Share Important in Business?
Earnings per share is a crucial measure for investors to assess a company’s profitability and financial health. It helps them make informed investment decisions by indicating whether a company is generating sufficient profits relative to its stock price.
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Associated Terms
Here are some associated business terms and synonyms for “Earnings Per Share”:
- EPS
- Earnings Yield
Apple Inc. Earnings Per Share
Apple Inc. reported a significant rise in their earnings per share in the last quarter, driven by strong sales of the iPhone and other products, showcasing robust profitability compared to other tech giants in the market.
Final Notes on Earnings Per Share
Investors should consider the trend of earnings per share over time in addition to current values to understand a company’s financial trajectory.
This has been a definition of Earnings Per Share meaning.
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