EPS : Earning Per Share

EPS is the profit of a single share earned in an accounting period. Actually EPS is the net income of each or single share over a period of time.

EPS is calculated as :

EPS = { ( Total Income – Total Expenses ) – Tax } ÷ Number of shares (only Issued or Distributed shares)

For Example : A company earned $ 100000.00, and its operating expenses are $ 20000.00, The Government charge tax $ 10000.00 and the company has issued 10000 shares in the market then
the EPS of the copamy will be :

{ ($ 100000.00 - $ 20000.00) – $ 10000.00 } ÷ 10000 = $ 7.00

You may have interest about the followings
Importance of EPS : Earning Per Share in Buying Decision
Importance of PE : Price Earning Rratio in Buying Decision
What is Authorized Capital ?
What is Public Limited Company ?
What is Profit ?
What is Dividend ?