Basic EPS consists of the company’s net income divided by its outstanding shares. It is the figure most commonly reported in the financial media and is also the simplest definition of EPS.

Learn how to calculate earnings per share (EPS) and why it is an important gauge in determining a stock’s value and the profitability of a company.

In other words, EPS is a company's profit expressed on a per-share basis. Earnings per share — often abbreviated EPS — is a metric that expresses a company’s profit on a per-share basis.