Earnings Per Share (EPS)
The portion of a company’s profit allocated to each share.
EPS = Net Profit ÷ Number of Shares Outstanding
Quick EPS calculator
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EPS = Net Profit ÷ Number of Shares Outstanding
What is the Earnings Per Share (EPS)?
Earnings per share is a company’s net profit divided by its share count — the profit attributable to each individual share. It is the "E" in the P/E ratio.
How to interpret it
Rising EPS over time is the engine of long-term share-price growth. Watch for EPS boosted by buybacks (fewer shares) versus genuine profit growth.
What’s a good value?
There is no absolute "good" EPS — what matters is the trend and the price you pay for it (see P/E). Consistent EPS growth is the goal.
Common mistakes
- Comparing raw EPS between companies — share counts differ, so it’s not comparable.
- Missing that buybacks can lift EPS without any profit growth.
See it on a real stock
This ratio computed for any listed company.
Related ratios
All financial ratios →For educational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.