Earnings Per Share (EPS) is really important for figuring out how well a company is doing financially. It helps us compare a company's success to other numbers in finance.

1. How EPS is Related to Net Income:
   EPS is found by taking the company's net income and dividing it by the number of shares that are available for people to buy.
   $\text{EPS} = \frac{\text{Net Income}}{\text{Outstanding Shares}}$
   This shows how good a company is at making profit for each share.

2. EPS and the P/E Ratio:
   EPS is part of something called the Price-to-Earnings (P/E) ratio. We calculate it like this:
   $\text{P/E} = \frac{\text{Market Price per Share}}{\text{EPS}}$
   When EPS is high, the P/E ratio often gets lower. This can mean that the stock is undervalued, or not priced high enough.

3. EPS vs. Dividends:
   EPS tells us how profitable a company is, but Dividend per Share (DPS) shows how much of that profit is shared with the people who own stock. A company that has high EPS but low DPS might be using its profits to grow instead of paying them out as dividends.

By looking at EPS along with these other numbers, we can get a better idea of how healthy a company's finances really are.