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Earnings Per Share (EPS)

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Description

The portion of a company’s profit allocated to each outstanding share of common stock.

Earnings Per Share (EPS) is a key indicator of a company’s profitability, showing how much profit is allocated to each share of common stock. Investors use EPS to gauge a company’s financial health, compare profitability across firms, and assess stock valuation. A higher EPS often suggests a company is doing well, making it an essential metric for investment decisions.

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