EPS is the word used most often in the context of financial or stock markets and while investing into a stock it is imperative to look at EPS of the company. Full form of EPS is Earning Per Share. EPS can be calculated with the help of following formula Profit after tax/Number of outstanding equity shares, higher earnings per share of a company indicates that company is generating higher profits for its shareholders and hence it is better to invest in companies having higher earnings per share than those companies which have lower earnings per share.