What does earnings per share mean? How is it calculated? Give an example!

Updated on educate 2024-03-12
19 answers
  1. Anonymous users2024-02-06

    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 net profit after tax 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.

    The formula for calculating earnings per share is: earnings per share = net profit Total share capital.

    Through the above figure, we can see that Kweichow Moutai's net profit is 10,000 yuan, and Kweichow Moutai's total share capital is 10,000 shares, so his earnings per share EPS = net profit Total share capital = 10,000 yuan 10,000 shares = yuan shares.

  2. Anonymous users2024-02-05

    It's how much money you make per share! Total earnings divided by total share capital!

  3. Anonymous users2024-02-04

    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.

  4. Anonymous users2024-02-03

    Earnings per share definition.

    Earnings per share is 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 one of the important indicators to determine the value of investment, a basic indicator for analyzing the value of each share, an important indicator for comprehensively reflecting the company's profitability, and it is the ratio of the company's net income to the number of shares in a certain period. The ratio reflects the profit after tax generated per share, with higher ratios indicating more profit generated.

    If the company has only ordinary shares, the net income is net profit after tax, and the number of shares refers to the number of common shares outstanding. If the company also has preferred shares, interest distributed to preferred shareholders shall be deducted from the net profit after tax.

    Earnings per share Profit Total number of shares.

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

    Profit 100w, number of shares 100w shares 10 yuan shares, total assets 1000w profit margin 100 1000 * 100 10 earnings per share 100w 100w 1 yuan.

    Profit 100w, number of shares 50w shares 40 yuan shares, total assets 2000w profit margin 100 2000 * 100 5

    Earnings per share of 100w 50w 2 yuan.

    The formula for calculating the revenue indicator.

    The traditional formula for calculating earnings per share metrics is:

    Earnings per share Net profit at the end of the period Total share capital at the end of the period.

  5. Anonymous users2024-02-02

    Earnings per share is an important indicator that comprehensively reflects the profitability of a company, and can be used to judge and evaluate the operating performance of 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.

  6. Anonymous users2024-02-01

    Earnings per share refers to the ratio of net income to the total number of common shares for the year, with fully diluted earnings per share and weighted average earnings per share depending on the number of shares. Fully diluted earnings per share is calculated based on the total number of common shares at the end of the year, on the grounds that new shares are generally issued at a premium, and the new and old shareholders share the proceeds of the company before the issuance of new shares. Weighted average earnings per share refers to the number of shares weighted by the total number of shares on a monthly basis at the time of calculation, because the basis of income generation is different due to the different capital and assets invested by the company.

    2.If the listed company has a negative net profit, then the earnings per share of the listed company is negative. (quarterly and annual).

  7. Anonymous users2024-01-31

    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.

  8. Anonymous users2024-01-30

    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.

    The 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 for the period.

    Take the calculation of a company's basic earnings per share in 2008 as an example:

    The company's net profit attributable to ordinary shareholders in 2007 was 250 million yuan. At the end of 2006, the share capital was 80 million shares, and on February 8, 2007, based on the total share capital as of 2006, 10 shares for every 10 shares were given to all shareholders, and the total share capital became 160 million shares. On November 29, 2007, another 60,000,000 new shares were issued.

    The company's basic earnings per share for 2007 are calculated in accordance with the new accounting standards

    Basic earnings per share = 25000 (8000 + 8000 1 + 6000 1 12) = yuan shares.

  9. Anonymous users2024-01-29

    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 total share capital, 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.

  10. Anonymous users2024-01-28

    Earnings per share refers to the earnings per share calculated by dividing the net profit for the period attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares. If an 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.

  11. Anonymous users2024-01-27

    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.

  12. Anonymous users2024-01-26

    Or go find some professional staff, and then he asked me to let him play with that sister.

  13. Anonymous users2024-01-25

    Earnings are a number, and what you have to care about is, how much does the share give you?

  14. Anonymous users2024-01-24

    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.

  15. Anonymous users2024-01-23

    What does earnings per share meanWhat 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.

  16. Anonymous users2024-01-22

    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.

  17. Anonymous users2024-01-21

    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.

  18. Anonymous users2024-01-20

    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 that ordinary shareholders can enjoy for each share they hold or the net loss of the enterprise that they need to bear. 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 profit table, Article 9 lists the items of "basic earnings per share" and "diluted earnings per share".

    2. Among the many tools of investment fundamental analysis, EPS is also one of the most common reference indicators, like the price-earnings ratio, price-to-book ratio, and discounted cash flow ratio.

  19. Anonymous users2024-01-19

    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. It is the net profit of the enterprise that the shareholders of ordinary shareholders can enjoy or the net loss of the enterprise that they need to bear for each share of the company. Earnings per share is usually used to reflect the operating results of an enterprise, measure the profitability and investment risk of common stocks, and is used by investors and other information users to evaluate the profitability of the enterprise and the growth potential of the enterprise.

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