![Crypto Terms Glossary: What is Earnings Per Share (EPS)? Crypto Terms Glossary: What is Earnings Per Share (EPS)?](/img/134/491/what-is-earnings-per-share-eps-sm.webp)
Earnings per share (EPS) is a method used in fundamental analyses of a company's profitability. Fundamental analysis involves evaluating a company's stock rather than just its earnings. Earnings and shares combined can provide a great deal of insight into a company's profits. EPS tells us how much of a company's profit is assigned to each share of stock. EPS is calculated as net income (after dividends on preferred stock) divided by the number of outstanding shares.