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Sunday, February 2, 2014

What is Earnings Per Share (EPS)?

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It refers to the net profit that every share of a company earns. This is calculated by dividing the net profit of a company by the total number of shares issued by that company. Usually, EPS is used to compare how good a company is. Simple logic says higher the earning by a company’s share, the better it is. A related ratio that investors look at is price-to-earnings (P/E) of a share. Lower the P/E, more attractive is the stock price for investors. It is the results season now and investors may look at EPS of all the companies which are announcing their results.

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  5. Birla Sun Life Tax Relief ‘96 Invest Online
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  9. Edelweiss ELSS Invest Online

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