The Meaning of EPS: What It Is and How To Use It

What does EPS stand for, and how is it used in the financial sector? Keep reading this article to learn the meaning of EPS and how to use it!

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If you are involved in the stock exchange, you may have heard of the term EPS! This article will teach you all about how to calculate EPS and other definitions of this acronym.  

What Does EPS Mean?

According to Investopedia and Your Dictionary, EPS stands for earnings per share. This term refers to a company’s profitability, calculated by the company’s profit (numerator) divided by the number of outstanding shares of common stock (denominator). If you have a high EPS, your company is very valuable!

The EPS calculation uses a company’s net income and the number of shares to give a sense of cash flow and the company’s earnings. This is known as the basic EPS. The diluted EPS also factors in shares issued by the company itself, such as a capital structure that provides stock options, RSU (restricted stock units), or warrants.

To calculate net income for a company’s EPS, you need an income statement or balance sheet that shows your basic earnings. These will affect the numbers you put into the EPS formula to get your EPS number. These financial statements can affect investment decisions by investors.

EPS can calculate another financial ratio: the price to earnings ratio (P/E ratio). In this calculation, the P stands for the company’s share price, and the E stands for EPS. Using this number, investors can determine their preferred stock’s share price or stock price on the stock market. A company’s share price of a company’s stock is dependent on many things, including EPS.

What Are Other Meanings of EPS?

The Free Dictionary provides numerous other definitions of EPS! Read on to learn about all the things EPS can mean.

Meanings of EPS in Technology

EPS has several meanings in the field of technology!

  • Enterprise Parallel Server
  • E-Mail Postal Software
  • Epson Laser
  • Event Processing System
  • E-Plus Service
  • Emdeon Practice Services (Tampa, FL)
  • Electronic Player Station (gaming)
  • Elite Proxy Switcher (software)
  • Electronic Payment Summary (Blue Cross)
  • Embedded Processor System
  • Enterprise Password Safe (computer passwords)
  • Evolved Packet System (3GPP technologies)
  • Events per Second (computing metric)
  • Enterprise Payment Solutions (est. 2003)
  • Error Programmer’s Sequence
  • Ethernet Protection Switching (Occam Networks)
  • Estate Planning System (software)
  • Ethernet Print Server
  • Electronic Prepaid System
  • Enterprise Project Structure
  • E-Procurement System (various companies)
  • Export PostScript
  • E-Mail Preference Services
  • Embedded Pserver (Novell)
  • Entry Power Supply
  • Extended Postscript (file type)
  • Enterprise Property Services (Sprint)
  • Elementary Procedures
  • Equipment Protection Switching
  • Electronic Payment System
  • Encapsulated PostScript
  • End Point Security
  • Episodes
  • Electronic Payment Service
  • Engineering and Planning System (Bellcore)
  • Engineering Purchase Specification
  • External Power Supply
  • Enterprise Protection Strategy (Trend Micro)
  • Epsilon
  • Enterprise Payment System
  • Extended Protocol Specification
  • Encapsulated Postscript (file extension)
  • Enhanced Platform Services (Sprint)
  • Electronic Publishing Systems
  • Electronic Payment Support
  • E-Mail Proxy Server

Meanings of EPS in Government

If you work for the government, you might see EPS stand for one of the below!

  • Environmental Planning Statement
  • Exercise Planning Staff
  • Energy Portfolio Standard (various organizations)
  • Enhanced Polar System (US DoD)
  • European Protected Species (EU)
  • Electric Power System
  • ELINT Processing Subsystem
  • Environmental Protection Specialist (various government agencies)
  • Enlisted Promotion System
  • Energetic Particles Sensor
  • Edmonton Police Service
  • Economic Planning System
  • Environmental Processing System
  • Enhanced Processing Segment
  • Environmental Planning Services (various locations)
  • Environmental Portfolio Standard
  • Emergency Petition Service
  • Export Promotion Services
  • Essential Programs & Services (Maine)
  • Electronics Packaging Subsystem (Cassini Plasma Spectrometer)
  • Executive Protection System (weapon)
  • Engineering Practice Study
  • Electronic Posting System
  • Executive Protective Service (United States Secret Service)
  • Efficiency Portfolio Standard (various organizations)

Meanings of EPS in Science

Scientists can use EPS to stand for any number of the below definitions.

  • Engineering Performance Specification
  • Expressed Prostatic Secretions
  • Engine Protection System
  • Encefalopatia Porto-Sistemica (Portuguese: Porto-Systemic Encephalopathy)
  • Electronic Power Steering
  • Eco Pickled Surface (descaling process)
  • Empresas Promotoras de Salud (Colombia)
  • External Power Source
  • Extrapyramidal Syndrome
  • Engineering Plans & Services
  • Electrical Power Source
  • Extracellular Polymeric Substance
  • Elastosis Perforans Serpiginosa
  • Earthquake Protection Systems, Inc. (Mare Island, Vallejo, California )
  • Environmental Priority Strategies
  • Electronic Patching System
  • Energetic Particle Spectrometer (physics)
  • Experimental Psychology Society
  • Energized Plasma Stream
  • Extracellular Polysaccharides
  • European Peptide Society (est. 1989)
  • Expanded Polystyrene (styrofoam)
  • Electrophysiology Study
  • Electrical Power System
  • Eumetsat Polar System
  • Extrapyramidal Symptoms
  • Electrical Power Subsystem
  • Evolutionary Programming Society
  • Effektive Pferdestärken (German: Actual Horse Power)
  • Earthquake Protective Systems
  • Études Probabilistes de Sûreté (French: Probabilistic Safety Assessment)
  • Emissions Processing System
  • Ear, Patella, Short Stature Syndrome
  • Exophthalmos-Producing Substance
  • Electrical Power and Paddle Subsystem
  • Expandable Polystyrene
  • Earth and Planetary Sciences
  • Educational Psychology
  • Engineered/Engineering Performance Standard
  • Exopolysaccharide
  • Ensemble Prediction System

Meanings of EPS in Business

There are plenty of other meanings of EPS in business besides earnings per share!

  • Efficient Power System
  • Enterprise Professional Services (Austin, TX)
  • Elektroprivreda Srbije (Serbian: Electric Power Industry of Serbia)
  • Equipment Performance Specification
  • Enterprise Performance System (E-Talk Corporation)
  • Epicurean Preservation System (vacuum pump)
  • Enhanced Production System
  • Early Production System (various companies)
  • Educators Publishing Service (Cambridge, MA)
  • Engineered Products and Solutions
  • Electronic Pet Shop (online store)
  • Electric Power Systems (Maryland Heights, Missouri)
  • Electronic Power Shift
  • Engineers, Planners & Surveyors
  • Express Parcel Service
  • Empty Passenger Stock (UK)
  • Enterprise Production System (aka Manufacturing Execution System, MES)
  • Electronic Payment Services, Inc.
  • Engineering and Professional Services Incorporated
  • Electric Power Industry of Serbia
  • Electric Power Steering
  • Eye Physicians and Surgeons of Ontario (Ontario, Canada)
  • Electronic Publishing Services Ltd.
  • Economists for Peace and Security (New York)
  • Elektropneumatische Schaltung
  • Électroménager Pièces Services (French: Electronics Parts Services)
  • Electronic Procurement System
  • Employment Practices Solutions (Texas)
  • Encina Power Station (Carlsbad, CA)
  • Energy and Power Solutions (California)

Meanings of EPS as Organizations

Many organizations go by the abbreviation EPS.

  • Edina Public Schools (Minnesota)
  • Ejercicio Profesional Supervisado (Guatemala)
  • European Physical Society
  • Edinburgh Photographic Society (UK)
  • Evergreen Public School (various locations)
  • Epidemic Prevention Station (hospitals)
  • Education pour la Santé (French)
  • European Project Semester (school project)
  • Enterprise Preservation Society (Enterprise, Florida)
  • Elite Player Squad (UK)
  • Elgin Park Secondary School (South Surrey, BC, Canada)
  • Éducation Physique et Sportive (French: Physical Education and Sports)
  • Eunos Primary School (Singapore)
  • Energy Policy Scenario
  • Edgefield Primary School (Singapore)
  • Evergreen Public Schools (various locations)
  • Ethical Practices System (American Sign Language Interpreters)
  • Environment Protectors Society
  • Educational Plant Survey (Florida)
  • Evergreen Primary School (Singapore)
  • Educational Psychology Service
  • Education Professional Studies
  • Emergency Planning Society (est. 1993)

Meanings of EPS as Slang

For slang terms that use EPS, read on!

  • Electro Plasma System (Star Trek)
  • Elevated Parking Structure
  • Evil Princess Sara (webcomic)
  • Eterno Primer Semestre

Conclusion

EPS stands for earnings per share. This financial calculation divides a company’s net profit by its total number of shares. Sometimes companies calculate EPS based on weighted average shares. However, beginners can use their base number of total shares for valuation!

Sources:

  1. Earnings Per Share (EPS) Definition | Investopedia 
  2. EPS – What does EPS stand for? | The Free Dictionary 
  3. What does eps mean? | Best 8 Definitions of Eps | Your Dictionary