EPS, or earnings per share, helps you gauge a company's profitability. It tells us how much money each share of stock earns. Imagine you own a pizza parlor, and you made £100,000 in profit last year. If your pizza parlor has 100,000 shares, the EPS would be £1 If there were only 10,000 shares, the EPS would be £10. Here's how it works: To calculate EPS, divide the total earnings by the number of shares. In this case, £100,000 divided by 10,000 shares equals an EPS of £10 per share. Typically, the higher the Earnings per share, the better! #personalfinance #educational #financialeducation #money #financemanagement #finance #illustrated #economics #eps #stocks #investing #shorts #education #stockmarket #illustratedfinance