Earnings Per Share:
It is the amount that a shareholder get for every shares on the profit available to the equity shareholders on a per share basis.
It is calculated by dividing the profits available to the equity shareholders by the number of outstanding shares.
EPS is most widely used in estimation of firm’s value and performance.
EPS is a measure of profitability of a firm.
It helps to compare with past performance, comparison with other firms and comparing with the industry average.
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