Thursday, October 2, 2014

what is EPS ( Earning Per Share)

It is the profit of the firm per outstanding share. It is said higher the value of EPS, the more profitable is the company.

Different Methods of Calculations:

Method 1
    EPS =   Profit Available To Equity Shareholders (PAES)
                              No of outstanding shares

 Method 2
    EPS =   Market price per share (MPS)

                    Price earnings ratio (PE)

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