Sunday, September 4, 2016

Earnings Per Share (EPS) - Definition

Definition:


"Earnings Per Share (EPS) means the 'Net Profit' or 'Profit After Tax (PAT)' of a company reduced or converted to a single share.




Formula:



Picture shows formula for calculating Earnings Per Share (EPS)

Example:


Let us consider the example of the EPS of SJVN Ltd., a company listed on Indian stock exchanges, for the financial year ending on 31st March, 2015.

Picture shows a table computing earnings per share EPS

Further Reading:






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