What is EPS? « Indian stock market

What is EPS?

Posted by bsesensex on June 20, 2008

Question: What is EPS ?

Answer: Let us assume that there is a company A, which has issued 100,000 shares, each having a market value of Rs. 500 and a face value of Rs. 100.

Now let us assume that the profit of the company in a financial year, after taxe deductions is Rs. 1 Crore.

The EPS or earning per share will then be calculated as the shared earning of each share.

So, the EPS will be Rs. 1 Crore divided by 100,000 shares or Rs. 100

The EPS will be Rs. 100 in this case.

This entry was posted on June 20, 2008 at 10:00 am and is filed under Dummy's Guide to Stocks. Tagged: bombay stock exchange, bse, calculated, company, earning per share, eps, financial year, national stock exchange, nse, profit, rs., rupess, share, stock. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.