Earnings Per Share (EPS) is a key indicator of a company's profitability and financial performance. It represents the portion of a company's profit allocated to each outstanding share of common stock. A consistently growing EPS over time signals strong business health, efficient operations, and the ability to generate increasing profits. Investors often reward such companies with higher valuations, as sustained EPS growth suggests future earnings potential and lower investment risk. As a result, companies with a track record of rising EPS typically command a premium in the market compared to peers with stagnant or declining earnings.

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The Price-to-Earnings (P/E) ratio compares a company’s share price to its earnings per share (EPS). It is one of the most widely used valuation metrics, helping investors assess whether a stock is undervalued or overvalued compared to its historical levels and industry peers.

Revenue, also known as sales or top-line income, is the total amount of money a company earns from its business activities — typically from selling goods or providing services — before any costs or expenses are subtracted. It is often the first line item on a company’s income statement and serves as a key indicator of business size and growth potential.

Share buybacks are important because they reduce the number of outstanding shares in the market, which can increase earnings per share (EPS) and enhance shareholder value. When a company consistently buys back its own shares, it signals confidence in its financial strength and future prospects. A declining share count also means each remaining share represents a larger ownership stake in the company. This is generally viewed as a healthy sign, especially when buybacks are done alongside strong earnings and cash flow, indicating disciplined capital allocation.