Earnings per share (EPS) definition. What is earnings per share (EPS)? Earnings per share (EPS) is an important metric in a company’s earnings figures. It is calculated by dividing the total amount of ...

EPS example. Let’s say you want to buy the shares of XYZ Industries, which currently has a total net income of $900,000. If the company has 75,000 shares in circulation, this would give an EPS of $12 ...