What is the formula for calculating basic earnings per share? What does basic earnings per share mea

Fundamental earnings per share is relatively common in the fundamental analysis of listed companies, and many novice investors** will ask, what is the accounting formula for fundamental earnings per share? Let's take a look.

Underlying U.S. stock earnings represent the ratio of the weighted average of the common shares issued and outstanding to the current net earnings ratio of a company's common stockholders. We can also see from this theory what the fundamental earnings per share accounting formula is: profit per common share = (after-tax profit - preferred share dividend) The average number of common shares outstanding.

From the above accounting formula, it can be seen that preferred shares are removed when calculating the underlying earnings per share. When a company does not have preferred shares, the company's current net profit is the value we want; When a company has preferred shares, and the preferred shares accumulated by non-original shares, the company can only account for the income of common shares after deducting the dividends to be paid, so this value is more objective.

And what does the underlying earnings per share illustrate? The accounting of fundamental earnings per share can show that the shareholders' equity per share can increase in value within a certain period of time (one year or half a year). When conducting the first analysis, it can be used as one of the financial indicators to judge the company's earnings ability, and can be analyzed in combination with the first trend, and the fundamental changes in the general trend of the skill side are related.

The higher the underlying earnings per share, the greater the company's earnings, which is also an important consideration when conducting new stock operations. At the time of profiling of the currently listed**, a P/E ratio of less than 30 after EPS accounting indicates less risk, and more than 60 indicates greater risk.

The above content on the underlying earnings per share is expected to be of some assistance to the majority of investors. If you want to know more about the fundamental knowledge and operation of ** trading, welcome to enter for a specific understanding.

I didn't know much about fundamental analysis and technical analysis before, and I plunged into the ** to sell when I made money, and I kept it when it fell, and I made money. Now I want to make more money, so I learned fundamental analysis and technical analysis. I've been studying for more than half a year, and now, I'm deeply involved in it.

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.

Basic earnings per share are calculated as follows:

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

How to use the earnings per share growth rate indicator.

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

Comparison with other companies in the same industry;

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

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

Statistical calculation formula

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.

Earnings per share

Earnings per share is earnings per share, also known as after-tax profit per share and earnings per share, which refers to the ratio of after-tax profit to total share capital. If it is a brother or sister, the common shareholders can enjoy the net profit of the enterprise or the net loss of the enterprise for each share they hold.

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. In the income statement, it is listed in Article 9"Basic earnings per share"with"Diluted earnings per share"Project.

Basic earnings per share is calculated by dividing net profit attributable to ordinary shareholders for the period by the weighted average number of shares of common stock actually outstanding for the period.

Earnings per common share = (Net Profit - Preferred Stock Dividend) Number of common shares outstanding. Among them, preferred shares refer to the ** that has the right to preferential distribution of corporate profits, where net profit refers to after-tax profits, after-tax profits = total profits - income tax expenses, pre-tax profits = total profits = operating profits + non-operating income - non-operating expenses.

Common shares are shares that enjoy ordinary rights and bear ordinary obligations, and are the most basic form of company shares. Shareholders of ordinary shares have equal rights to the company's management and income, and dividends are distributed according to the company's operating efficiency, which is more risky. Shares that enjoy ordinary rights in the management of the company's management and the distribution of profits and property represent the right to claim the profits and remaining property of the company after satisfying all claims and the claims of the preferred shareholders for income and claims.

It forms the basis of the company's capital, is a basic form of issuance, and is the largest and most important form of circulation. The ** shares currently traded on the Shanghai and Shenzhen ** exchanges are all ordinary stocks.

The basic feature of common shares is that their investment income (dividends and dividends) is not agreed upon at the time of purchase, but is determined afterwards based on the operating performance of the issuing company. If the company's operating performance is good, the income of common stock will be high; Conversely, if the operating performance is poor, the return on common stock will be low. Common stock is the most important and basic share in the capital structure of a joint-stock company, and it is also the most risky share, but it is also the most basic and common one.

** Listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange in China are all ordinary shares.

Common stock represents a residual claim to a company's assets, and the owner of the common stock is entitled to any remaining assets after the performance of all other financial contracts of the business.

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

In the income statement, Article 9 lists the items of "basic earnings per share" and "diluted earnings per share". Among the many tools for fundamental investment analysis, EPS is also one of the most common reference indicators, along with indicators such as price-earnings ratio, price-to-book ratio, and discounted cash flow;

2. 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.

Basic earnings per share, also known as after-tax earnings per share and earnings per share, refers to the ratio of after-tax profit to total share capital. It is an important indicator that comprehensively reflects the profitability of the company, and it is also one of the important indicators to determine the value of the first investment and the old leader. Calculatingly, it is the ratio of the company's net income to the number of shares in a given period, which reflects the after-tax profit generated per share, and the higher the ratio, the more profit is generated.

The specific calculation formula is as follows:

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

Among them: the weighted average number of shares actually issued in the current period = the number of ordinary shares issued at the beginning of the period + the number of newly issued ordinary shares in the current period The time issued in the reporting period - the number of shares repurchased in the current period The time of the repurchase The time of the reporting period.

Basic earnings per share is calculated by dividing the net profit attributable to ordinary shareholders for the period by the weighted average number of ordinary shares actually outstanding in the current period.

a) Determination of the molecule.

1.When calculating basic earnings per share, the numerator is the net profit attributable to ordinary shareholders for the period.

For companies that are making a loss, earnings per share are presented as negative.

2.The numerator of earnings per share calculated on the basis of the consolidated financial statements shall be the consolidated net profit attributable to the ordinary shareholders of the parent company, that is, the balance after deducting the profit and loss of the reduced shareholders.

If the financial statements of the parent company provided together with the consolidated financial statements indicate that the enterprise chooses to present earnings per share on its own, the numerator of the earnings per share calculated on the basis of the individual financial statements of the parent company shall be the net profit for the current period attributable to all ordinary shareholders of the parent company.

2) Determination of the denominator.

1.When calculating basic earnings per share, the denominator is the weighted average number of common shares outstanding in the current period, i.e., the number of shares outstanding at the beginning of the period adjusted for the product of the number of new or repurchased common shares issued or repurchased in the current period and the corresponding time weights.

The company's treasury shares are not ordinary shares issued and have no right to participate in the distribution of profits, and should be deducted when calculating the denominator.

2.The number of newly issued ordinary shares shall be calculated and determined from the date of consideration receivable or paid-in in accordance with the specific terms of the issuance contract.

Under normal circumstances, the date of consideration receivable or paid-in is the issuance date. However, in some specific circumstances, such as private placement, the two dates may not be consistent, and the enterprise should refer to the date of the consideration receivable.

For example, if an enterprise purchases an asset and pays consideration for a certain number of ordinary shares to be issued in the future, the number of ordinary shares shall be included in the weighted average number of outstanding ordinary shares from the date of recognition of the asset.

3.When the common shares issued as consideration in a business combination are included in the weighted average number of ordinary shares outstanding, there should be two types of cases.

1) In the case of a business combination that is not under the same control, the purchaser obtains actual control over the acquiree from the date of purchase.

The net profit realized by the acquiree before the date of purchase is included in the cost of consolidation, and the net profit of the acquiree that the purchaser can truly control and enjoy shall be calculated from the date of purchase, that is, the purchaser will only incorporate the income, expenses and profits of the purchaser into its income statement from the date of purchase.

Since the number of common shares and the net profit of the numerator should remain the same when calculating earnings per share, the number of common shares issued as consideration in the merger of enterprises not under the same control should also be calculated from the date of purchase.

2) Business combination under the same control, the enterprises participating in the merger are under the ultimate control of the same party or the same parties before and after the merger.

The retained earnings of the reporting entity based on the consolidated financial statements after the merger include the cumulative amount of net profit realized by the parties involved in the merger before the merger. Consistent with the numerator's net profit, the ordinary shares issued as consideration in a business combination under the same control shall also be deemed to have been issued at the beginning of the earliest reporting period and shall be included in the weighted average number of ordinary shares in each reporting period.

Earnings per share = (net profit - preferred share dividend) Weighted average number of common shares outstanding.

You don't need to calculate the spring yourself, and the general ** software is arguing which will only provide earnings per share.

Just look at this data.

Overview A company should calculate primary earnings per share based on the net profit for the period attributable to ordinary shareholders divided by the weighted average number of common shares outstanding.

Earnings Formula Basic earnings per share = Net profit Total equity.

The weighted average number of common shares outstanding is calculated using the following formula:

Weighted average number of common shares outstanding Number of common shares outstanding at the beginning of the period Number of new shares of common stock issued in the current period Time of issuance Time of reporting period Number of shares of common stock repurchased in the current period Time of repurchase Time of reporting period.

Fully Diluted Earnings Per ShareThe diluted earnings per share is calculated on the basis of basic earnings per share, which is calculated by adjusting for the net income for the period attributable to common shareholders and the weighted average of the shares of common stock outstanding, respectively, by assuming that all of the company's outstanding dilutive potential common shares have been converted into common shares.