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What does EPS indicate?
Written by Chanel
Updated over a week ago

EPS or Earnings Per Share is a company’s net profit divided by the number of shares still available to purchase.

This does not indicate what you’d expect in return for holding a share, it’s another tool you can use to determine a company’s value.

Typically a higher EPS can indicate a higher value, as investors will tend to pay more for shares they think will return a more significant profit.

The key word however is think. EPS is a helpful tool to measure, but the share market can be volatile, so it's key to use multiple factors and consider what is suitable for you before investing.

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