Source: BloombergQuint

BQLearning: What Is EPS?

BQLearning is a show that seeks to demystify financial markets, economic theories, legal processes and political structures. This series focuses on financial market jargon.

EPS stands for earnings per share. It breaks down a company’s profits on a per share basis, indicating a company’s profitability. EPS is an important indicator in determining a company’s share price. It's also used to calculate the price-to-earnings ratio.

Anupam Gupta, independent consultant at Aavan Research, explains the significance of EPS, and why it's such an important metric in determining the share price.