EPS (Earnings Per Share)

Tax Glossary Definition

EPS (Earnings Per Share)

Earnings per Share (EPS) is a profitability ratio that indicates the amount of net income attributable to each outstanding share of common stock. It serves as a fundamental measure of a company’s financial performance, helping investors assess how effectively profits are being generated on a per-share basis. A higher EPS generally signifies stronger profitability and growth potential.

Example: If a company records a net profit of ₹10 lakh and has 1 lakh equity shares in circulation, its Earnings per Share (EPS) amounts to ₹10 per share.

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