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.