What is EPS ?

Before selecting any company, we have to do a fundamental analysis of that company so that we can know whether the company will grow in the future or not.

In fundamental analysis, we have to see the balance sheet profit and loss statement of the company and many ratios and data.

Today we will talk about EPS and how we can analyze the company with the help of EPS.

EPS is called Earning per share When a company shares its entire profit with its investor, then how much profit will an investor get behind a share, this is what we call EPS.

To get EPS, when we divide the profit of the company from the total number of outstanding shares then we get EPS.



To know the number of outstanding shares of the company, you have to extract market capitalization and after extracting the market capitalization, you divide it from the current share price. Your number of the outstanding share will come out.

The higher the EPS of any company, the better it is. We do not have to see 1 year EPS of any company. We have to see EPS of at least 5 years. If EPS continues to grow then good for that company.

We cannot buy shares of any company on the basis of EPS. To buy a share of any company, apart from EPS, many other things have to be analyzed.

If the EPS of any company has been increasing continuously for 5 years, then we have to see why EPS is increasing.

Many times the company raises people, which increases its profit by putting it in its business, if the company's profit is increasing due to the loan of the company, then its EPS will also increase if the company is increasing its EPS by taking more loan than that company. We should stay away. There is little chance of that company to grow in the future.

What is EPS ? What is EPS ? Reviewed by Sharebulls on September 09, 2020 Rating: 5

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