Earnings per share is the quotient of a company's net income divided by the number of shares of stock it has outstanding. In other words, EPS is a company's profit expressed on a per-share basis.

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.

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.