Friday, September 23, 2016

Earnings Per Share (EPS) - Formula

EPS Formula:


EPS Formula

Definition:

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

Significance:

EPS is the important, denominator component in calculating Price to Earnings Ratio.


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.

Example Calculation of EPS of SJVN Ltd.

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