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How much EPS is good for stock?

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There is not one number that says whether EPS is good or bad.

EPS is earnings per share, which is calculated by dividing profit after tax by the number of shares outstanding. EPS is the profit that the company makes per share. As a rule, the higher the EPS, the better it is.

A stock is considered good if the EPS increases at a good rate year after year. Another way to determine whether a company's EPS is good is to compare it with the EPS of other companies in the same industry.


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