Glossary

Earnings per share: meaning, example and why it matters

A company's profit attributable to shareholders divided by its number of shares. It is the base for ratios such as the P/E ratio.

Worked example

A company with a net profit of ₹500 crore and 100 crore shares has earnings per share of ₹5.

Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.

Why it matters

EPS divides profit by share count, which is what makes ratios like P/E possible.

Related terms

Price-to-earnings ratioDividend

See it in practice

Lowest P/E ratio stocks

Frequently asked questions

Is EPS the same as the dividend?

No. EPS is profit per share; the dividend is the part that the company chooses to pay out.

Is this page investment advice?

No. Earnings per share is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.

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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.