EPS Basic, also known as Basic Earnings Per Share, is a financial metric that calculates the earnings per share of a company based on the number of outstanding common shares. It is a simple and widely used measure of profitability that gives investors an idea of how much profit a company is generating per share of its common stock.

The formula for Basic EPS is:

Basic EPS = (Net Income - Preferred Stock Dividends) / Weighted Average Shares Outstanding

Where:

• Net Income is the company's net income for the period

• Preferred Stock Dividends is the total amount of preferred stock dividends paid during the period

• Weighted Average Shares Outstanding is the average number of common shares outstanding during the period, adjusted for any stock splits, dividends, or other events that affect the number of shares outstanding.

Basic EPS does not take into account the potential dilution of the company's shares from the issuance of new shares, stock options, or other securities that can be converted into shares. Therefore, it provides a conservative measure of a company's earnings potential.