What is Earnings Per Share (EPS)?

Earnings Per Share (EPS) is a financial metric that shows how much profit a company earns for each outstanding share of its stock.

Formula for EPS

EPS = Net Profit ÷ Total Number of Outstanding Shares

Example

If Company A earns Rs 100 as net profit and has 20 outstanding shares, then EPS = 100 ÷ 20 = 5.

Leave a Comment

Your email address will not be published. Required fields are marked *