What does earnings per share mean What is the formula for calculating earnings per share?

Novices may have heard of such a thing, before buying, you must take a look at earnings per share, so what exactly is earnings per share? What is the formula for calculating it?

What is Earnings Per Share?

The so-called earnings per share is what we often call earnings per share, also known as after-tax earnings per share and earnings per share, which mainly refers to the ratio of after-tax earnings to total share capital. It is the net profit of the enterprise that the shareholders of common shares can enjoy for each share they hold, or the net loss of the enterprise that they need to bear.

Earnings per share is often used to reflect the operating effectiveness of a company, measure the risk of investment in common stock and the level of profitability, and is one of the important financial goals for investors and other information users to evaluate the company's earnings ability, guess the company's growth potential, and make relevant economic decision plans.

In the fundamental analysis of capital contribution, the same as the price-earnings ratio, discounted cash flow, and price-to-book ratio, earnings per share is also a reference target that is often visible.

Earnings per share calculation formula:

Underlying earnings per share = net profit for the period attributable to common shareholders Weighted average of common shares outstanding for the period.

How do I use the EPS target?

The company's earnings per share increase rate compares to the market as a whole.

Comparison with other companies in the same occupation.

Comparison to the company's own pre-historical earnings per share increase.

Compare the increase in earnings per share with the increase in sales revenue to measure the company's future growth potential.

The traditional formula for calculating the EPS target is:

Earnings per share = (gross profit for the period - dividend on preferred shares) Total share capital at the end of the period.

Well, the above is the relevant introduction to earnings per share, we can take a closer look, more about the basic knowledge of earnings per share, and we can continue to pay attention to understand.

Earnings per share refers to the ratio of after-tax profit to total share capital, it is one of the important indicators to determine the value of **investment, and its calculation formula is, earnings per share = after-tax profit Total number of shares, the ratio reflects the after-tax profit created per share, the higher the ratio, the more profit created. Huatai**'s one-stop wealth management platform - "Fortune Pass" provides a wealth of investment and wealth management courses, welcome to learn.

Net profit Total share capital.

Earnings from shares is an important indicator of the company's profitability and can be used to judge and evaluate the operating performance of the management. Earnings per share is calculated as follows: earnings per share = net profit Total number of common shares at the end of the year.

When analyzing the earnings per share metrics, it should be noted that the company uses the repurchase of treasury shares to reduce the number of outstanding common shares, so that the earnings per share can simply increase. In addition, if the company uses the earnings to pay dividends or issue **, it will increase the number of companies outstanding, which will greatly dilute the earnings per share. Earnings per share considerations.

It is important to pay attention to changes in the company's share capital and the composition of potential convertible common shares, and it is important to take these factors into account when comparing them, otherwise earnings per share will lose their authenticity. For companies with a simple share capital structure, or companies that have not changed their share capital during the financial reporting period, they can directly use fully diluted earnings per share.

For companies whose share capital has changed during the period, the weighted average earnings per share method should be used, and for companies with diversified and complex capital structures, such as warrants, convertible bonds, and equity incentives to be executed, these items imply that the company's shares have the potential to increase, and diluted earnings per share should be used in order to accurately assess earnings per share.

There are three types of calculations:

First, there is a change in the total owner's equity.

In the event of a change in the total amount of owners' equity, a weighted average of the total share capital is normally applied according to the timing of the change in shares, except in the case of a business combination under the same control in which shares are issued.

1. Calculated according to the time weight.

During the reporting period, if the total share capital of a listed company changes due to IPO, additional issuance, allotment, equity incentive exercise, share repurchase and other events that affect the amount of owners' equity, the weighted average of the total share capital shall be calculated according to the time of the change in shares.

2. Merger of enterprises issuing shares under the same control.

When calculating basic earnings per share, a listed company, as a merging party to a business combination under the same control, shall include all new shares issued as consideration in the weighted average number of common shares outstanding in the year of consolidation and the year of comparison (i.e., the weight is 1); In the presence of potentially dilutive common stock, the Company shall apply the same principles to the calculation of diluted earnings per share.

Second, the total amount of owners' equity has not changed.

During the reporting period, if the total share capital of a listed company changes due to events that do not affect the amount of owners' equity, such as bonus shares, conversion of provident fund into share capital, stock split or merger, etc., the earnings per share for each reporting period shall be recalculated according to the adjusted total share capital (i.e., adjusting the profit per share of previous years). In the event of any change in the total share capital of a listed company between the date of the balance sheet and the date of approval of the financial report, the earnings per share for the last three years reported in the income statement and the "main financial indicators" of the periodic report shall be adjusted, and the earnings per share for each comparison period shall be recalculated based on the adjusted total share capital.

The third is a company that issues preferred shares and classifies them as equity instruments.

Companies that issue preferred shares and are classified as equity instruments should consider the impact of preferred shares when calculating earnings per share. When calculating basic earnings per share, the net profit attributable to ordinary shareholders shall not include dividends on preferred shares, of which dividends declared after deliberation and approval in the current year shall be deducted for non-cumulative preferred shares; For accumulated preferred shares, the relevant dividends shall be deducted regardless of whether they are declared for distribution in the current period. For potentially dilutive preferred shares, diluted earnings per share should be determined after adjusting for the numerator and denominator of basic earnings per share in the assumed conversion.

Companies that issue perpetual bonds, etc., and are classified as equity instruments, shall be subject to the above-mentioned preferred stock calculation method when calculating earnings per share.

Earnings per share is earnings per share (EPS), also known as profit after tax per share and earnings per share, which refers to the ratio of profit after tax to total share capital. It is the net profit of the enterprise that the common stock holder can enjoy for each share held or the net loss of the enterprise that needs to be borne by the company.

1. The formula for calculating basic earnings per share is as follows:

Basic earnings per share = net profit for the period attributable to ordinary shareholders Weighted average number of common shares outstanding for the period.

2. How to use the earnings per share growth rate index:

1) the company's earnings per share growth rate compared to the market as a whole;

2) Comparison with other companies in the same industry;

3) a comparison with the company's own historical earnings per share growth rate;

4) Measure the company's future growth potential by comparing the growth rate of earnings per share with the growth rate of sales revenue.

3. The traditional formula for calculating earnings per share is as follows:

Earnings per share = (Gross profit for the period - Dividends on preferred shares) Total share capital at the end of the period.

It's not that higher earnings per share is better, because there is a share price per share.

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Having said so much, I want to tell you that basic analysis can be roughly known, ** is a thick line, sell high and buy low, identify a leading stock, good performance, good reputation boss excellent enterprise, has been repeatedly operating it, to ensure that you make money at the end of the year. This mountain looks at the height of that mountain, this share for that share, and in the end it is a busy year in vain. I will explain the truth to you clearly, but I often lack discipline in my own operation.

Ay. Now to answer your question, I have the impression that there is not much difference between earnings per share and basic earnings per share, both of which are market prices. I think instead of studying these, you should take a good look at the master's high opinions, look at the general direction of others, and don't look at this small problem. Otherwise, what if someone else's ST also makes a lot of money?

Basic earnings per share is relative to diluted earnings per share, that is, earnings per share without deduction and dilution.

Diluted earnings per share are calculated on the basis of basic earnings per share, assuming that all of the company's outstanding dilutive potential common shares have been converted into common shares, thereby adjusting for the net profit attributable to common shareholders for the period and the weighted average number of common shares outstanding, respectively.

Basic earnings per share for this quarter, earnings per share refers to the average of the first three quarters, why basic earnings per share and earnings per share are inversely proportional to the third quarter and the second quarter, and the first quarter must be a loss.

Earnings per share refers to the earnings per share calculated by dividing the net profit attributable to ordinary shareholders by the weighted average number of common shares outstanding. If the enterprise has consolidated financial statements, the enterprise should calculate and present earnings per share on the basis of the consolidated financial statements.

Earnings per share are calculated as follows:

Earnings per share = net profit for the period attributable to shareholders of common shares Weighted average number of common shares outstanding for the period.

Earnings per share, also known as earnings per share, refers to the ratio between profit after tax and total share capital.

Earnings per share calculation formula:

Earnings per share = net profit for the period attributable to ordinary shareholders Weighted average number of common shares outstanding; Other adjustment factors to be considered: distribution of ** dividends, allotment of shares.

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Earnings are a number, and what you have to be concerned about is, how much is it given to you per share?

Earnings per share is earnings per share after tax.

Earnings per share is calculated as follows: Earnings per share = (net profit for the period - dividends on preferred shares) annually weighted average total share capital.

What does earnings per share mean, and what is the formula for calculating earnings per share?

For a listed company, the proportion of the issuance of ** to investment income is earnings per share.

Earnings per share = net profit accumulated in the current period Total share capital.

Theoretically, the higher the earnings per share, the higher the shareholder's dividends, but in fact, the board of directors has to consider the future development of the company, and at the same time, the dividends of state-owned enterprises also have to consider the interests of the country, so sometimes the earnings per share is high, not the dividend is high. However, the overall trend is that the income is high and the dividend is also high.

Earnings per share (EPS), also known as after-tax profit per share and earnings per share, refers to the ratio of after-tax profit to the total number of shares, which is the net profit of the enterprise or the net loss of the enterprise that ordinary shareholders can bear for each share.

Earnings per share is usually used to reflect the operating results of enterprises, measure the profitability of common shares and investment risks, and is one of the important financial indicators for investors and other information users to evaluate the profitability of enterprises, the growth potential of enterprises, and then make relevant economic decisions.

The traditional formula for calculating earnings per share metrics is:

Earnings per share = (Gross profit for the period - Dividends on preferred shares) Total share capital at the end of the period.