EARNINGS PER SHARE (EPS).

Earnings, also known as net income or net profit, is the money that is left after a company pays for its liabilities. earnings are the most important factor in analyzing a company.

You calculate the earnings per share by dividing the amount of the earnings a company reports in a year by the number of shares it currently has outstanding.

Thus, if XYZ has 1 crore shares outstanding and has earned 100 crores in the last year, it has an EPS of Rs.100.

EARNINGS PER SHARE = NET PROFIT IN A FINANCIAL YEAR / NO OF SHARES OUTSTANDING