Earnings Per Share (EPS)

Profit sliced per share.

EPS breaks total net profit down to a single share: for each share you own, how much did the business earn this year? EPS = Net profit ÷ Number of shares Net profit Rs 20 crore, 1 crore shares. EPS = 20,00,00,000 ÷ 1,00,00,000 = Rs 20. EPS is the building block for P/E. Rising EPS over years is one of the cleanest signs of a growing business. Direct per-share profitability Feeds the P/E ratio Easy to trend over years Inflated by one-off gains Buybacks/issues shift it Ignores debt and cash quality

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: The Ratios.