Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Earnings Per Share is a company's net profit attributable to ordinary shareholders divided by the weighted average number of shares outstanding.
EPS shows how much profit each share earned. Rising EPS usually supports higher share prices over time.
Basic EPS uses outstanding shares; diluted EPS adjusts for convertible securities. EPS can be distorted by one-offs, buybacks, or accounting changes — analyse alongside cash flows.
If TCS reports ₹40,000 crore profit and 365 crore shares, EPS ≈ ₹109.6. If EPS grows from ₹90 to ₹110 over two years, earnings growth is roughly 22%.
EPS = (Net Profit − Preferred Dividends) ÷ Weighted Average SharesHigher EPS is positive if driven by genuine business growth, not one-time gains or aggressive accounting.
Bonus issues increase share count, reducing EPS per share proportionally while total earnings remain unchanged.
Quarterly results on NSE/BSE, annual reports, and screener tools publish basic and diluted EPS.