Earnings per share (EPS) is a way to measure a company's profit per share of stock. The P/E ratio, which is commonly used to evaluate a company's performance, relies on EPS. International Accounting Standard 33 (IAS 33) sets rules for calculating EPS for publicly traded companies. It also covers when to recognize shares issued. Diluted earnings per share considers the impact of potential shares on EPS, providing valuable information for investors and analysts.