What is the Earnings Per Share (EPS) of a Stock?
What is the Earnings Per Share (EPS) of a Stock? Welcome to BeachBum Trading! In today's short [What is the Earnings Per Share (EPS) of a Stock?] video 🎥, we will be discussing an important financial metric known as "earnings per share" or EPS. Have you ever come across this term while analyzing stock market data? If yes, then you're in the right place! In less than a minute, we will break down what EPS is and why it is crucial for investors. EPS is a metric that measures the profitability of a company. It shows how much profit a company has earned for each outstanding share of its stock. This information is valuable for investors as it helps them understand the financial performance of a company. To calculate EPS, you take the company's net income and divide it by the total number of shares outstanding. This gives you the earnings per share. A higher EPS is generally seen as a positive sign as it indicates that the company is generating profits. However, it...