Describe earnings per share,including how it's computed and how earnings per share is used to evaluate a company.

Earnings Per Share

A financial ratio that measures the amount of a company's profit allocated to each outstanding share of common stock, indicating a company's profitability.

Computed

Calculated or estimated following a specific procedure or formula.

Evaluate Company

Evaluating a company involves analyzing its financial statements, operations, market position, and future prospects to determine its value and health.