Earnings Per Share

Earnings Per Share

The earnings per share or EPS is a measure of the company’s financial performance during the period. Saket further explains the Price to Earnings ratio, and how both of them are calculated.
Overview

The earnings per share or EPS is a measure of the company’s financial performance during the period. It shows how much the investors have earned per ordinary share. There are two variations of EPS, basic and diluted.

Key learning objectives:

  • How is the basic EPS calculated?

  • How is the diluted EPS calculated?

  • What is the importance of Price to Earnings (P/E) ratio?

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Summary
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Expert
Saket Modi

Saket Modi

Saket is a financial trainer and consultant based out of London. He specialises in advanced accounting, financial reporting and financial analysis, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) and Financial instruments.

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