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Valuation
Also called: Earnings per share, EPS
EPS (earnings per share) is a company's net profit divided by the number of its shares. It is the profit that belongs to one share, and the 'E' in the P/E ratio.
EPS = Net profit attributable to shareholders ÷ Weighted average shares outstanding
A company made a net profit of ₹500 crore in a year and has 20 crore shares. Its EPS is ₹500 crore ÷ 20 crore = ₹25 per share.
It is profit expressed per share you own, which is what the share price is ultimately paying for.
Profit rising while earnings per share stagnate means new shares are being issued and existing owners are being diluted.
EPS (earnings per share) is a company's net profit divided by the number of its shares. It is the profit that belongs to one share, and the 'E' in the P/E ratio.
EPS = Net profit attributable to shareholders ÷ Weighted average shares outstanding. A company made a net profit of ₹500 crore in a year and has 20 crore shares. Its EPS is ₹500 crore ÷ 20 crore = ₹25 per share.
No. EPS describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.