Earnings per share (EPS)
EPS is the profit earned by a company for each share.
Earnings Per Share (EPS) shows how much profit a company makes for each of its outstanding shares. It is an important measure of a company’s profitability.
It is calculated by dividing the company’s profit by the total number of shares.
Higher EPS usually indicates better financial performance.
Example:
If a company earns ₹10 lakh and has 1 lakh shares, its EPS will be ₹10 per share.