What is Earnings Per Share (EPS)?
EPS shows the dollar amount of profit attributable to each share of stock. EPS growth — especially at a faster rate than revenue growth — is a sign of operating leverage and improving profitability. Watch for share buybacks: they boost EPS without increasing total profit.
Formula
EPS = Net Income ÷ Diluted Shares Outstanding
How TopTier Strategy uses Earnings Per Share (EPS)
EPS growth is a primary Growth pillar input. We always compare it to revenue growth to distinguish operating gains from accounting tailwinds.
Related Glossary Terms
Other concepts in the Growth pillar.
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