What is EPS (Earnings Per Share): Meaning, Formula, and Types of EPS

How do investors usually decide which stocks to buy or sell? There is a way that business owners use to communicate their financial performance to their stakeholders. It is done through EPS- Earnings Per Share. Now, what is EPS? EPS is a key metric that shows how much profit a company makes for each share of its common stock. Eps in stock market is widely used by investors, analysts, and managers to evaluate and compare different companies or stocks. EPS also influences the stock price, dividends, and corporate decisions. There are different types of EPS, how to calculate earnings per share, and different factors that affect it. EPS can also be manipulated, misinterpreted, or misunderstood by various parties. In this blog, we will explain everything you need to know about earning per share ratio, importance of earnings per share and earnings per share formula.