Earnings Per Share (EPS) is a financial metric that indicates a company's profitability on a per-share basis. It is calculated by dividing the net income of a company by the number of outstanding shares of its common stock. A higher EPS suggests that a company is generating more profit for each share, which can be an attractive feature for investors. EPS is often used by investors to assess a company's financial health and performance over time. It can also be compared with the EPS of other companies in the same industry to gauge relative performance. Additionally, companies may report both basic and diluted EPS, with diluted EPS accounting for potential shares that could be issued from stock options or convertible securities.