| Earnings Per Share (EPS) is a financial metric representing the portion of a company's profit allocated to each outstanding share of common stock. It is a crucial indicator of a company's profitability and is widely used by investors to assess its financial health. EPS is calculated by dividing a company's net income by the total number of outstanding shares. A higher EPS indicates greater profitability and is a positive sign for potential investors. However, it is crucial to consider other factors, such as industry benchmarks, growth prospects, and overall market conditions, when interpreting EPS. |
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