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)
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!
Kevin Miller is a growth marketer with an extensive background in Search Engine Optimization, paid acquisition and email marketing. He is also an online editor and writer based out of Los Angeles, CA. He studied at Georgetown University, worked at Google and became infatuated with English Grammar and for years has been diving into the language, demystifying the do's and don'ts for all who share the same passion! He can be found online here.