Stock Market
Intermediate
Earnings Per Share (EPS)
💡 In plain English: How much profit a company made per share — the single most-watched profitability figure.
Definition
A company's net profit divided by the total number of outstanding shares, showing profitability per share.
📌 Real-World Example
A large private bank earns ₹50,000Cr profit with 7,500Cr shares → EPS = ₹6.67. If the stock trades at ₹1,600, P/E = 240x (using share price, not lot size).
🔢 Formula
EPS = Net Profit / Total Shares Outstanding
Related Terms
Dividend
A share of a company's profits paid directly to shareholders —...
Market Capitalisation
The total value of a company's shares — price × number of shares =...
P/E Ratio (Price-to-Earnings)
How much you're paying per rupee of a company's earnings — a key...
Blue-Chip Stock
Shares of large, well-established companies with a long track...
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