Earnings Per Share (EPS):--- This measure expresses how much the company is earning for every share held. It is calculated by dividing pre tax profit by the number of shares in issued. Earnings per share is more important than the overall reported profit figure, because the EPS provides a better measure of profitability.
EPS क्या है और कैसे गिनें प्रति शेयर आय ---- कंपनी की कुल शुद्ध लाभ से हर शेयर के हिस्से में कितनी रकम आयेगी उसे ही Earning per Share प्रति शेयर आय यानि EPS कहते हैं। इसे गिनेंगे शुद्ध लाभ / कुल शेयरों की संख्या यदि 10 करोड़ रु की पूंजी वाली कंपनी जिसके 10रु की कीमत वाले 1 करोड़ शेयर हों और वह कंपनी 20 करोड़ रुपये का शुद्ध लाभ कमाती है तो उसकी प्रति शेयर आय 20 रुपये होगी: 20 करोड़ / 1 करोड़ = 20 यदि कोई कंपनी केवल तिमाही नतीजे ही घोषित करती है तो उन नतीजों के आधार पर कंपनी के पूरे साल के प्रति शेयर आय की भी गणना की जा सकती है।
Earnings per share can be calculated in two ways-
1.Earnings per share: Net Income after Tax/Total Number of Outstanding Shares
2. Weighted earnings per share: (Net Income after Tax - Total Dividends)/Total Number of Outstanding Shares
A more diluted version of the ratio also includes convertible shares as well as warrants under outstanding shares. It is considered to be a more expanded version of the basic earnings per share ratio.
For an investor who is primarily interested in a steady source of income, the EPS ratio can tell him/her the room a company has for increasing its existing dividend. Although, EPS is very important and crucial tool for investors, it should not be looked at in isolation. EPS of a company should always be considered in relation to other companies in order to make a more informed and prudent investment decision.
It is very worthwhile to track a company's earnings per share ratio on a trend line. If the trend is positive, then the company is either generating an increasing amount of earnings or buying back its stock. Conversely, a declining trend can signal to investors that a company is in trouble, which can lead to a decline in the stock price.
EPS क्या है और कैसे गिनें प्रति शेयर आय ---- कंपनी की कुल शुद्ध लाभ से हर शेयर के हिस्से में कितनी रकम आयेगी उसे ही Earning per Share प्रति शेयर आय यानि EPS कहते हैं। इसे गिनेंगे शुद्ध लाभ / कुल शेयरों की संख्या यदि 10 करोड़ रु की पूंजी वाली कंपनी जिसके 10रु की कीमत वाले 1 करोड़ शेयर हों और वह कंपनी 20 करोड़ रुपये का शुद्ध लाभ कमाती है तो उसकी प्रति शेयर आय 20 रुपये होगी: 20 करोड़ / 1 करोड़ = 20 यदि कोई कंपनी केवल तिमाही नतीजे ही घोषित करती है तो उन नतीजों के आधार पर कंपनी के पूरे साल के प्रति शेयर आय की भी गणना की जा सकती है।
Earnings per share can be calculated in two ways-
1.Earnings per share: Net Income after Tax/Total Number of Outstanding Shares
2. Weighted earnings per share: (Net Income after Tax - Total Dividends)/Total Number of Outstanding Shares
A more diluted version of the ratio also includes convertible shares as well as warrants under outstanding shares. It is considered to be a more expanded version of the basic earnings per share ratio.
For an investor who is primarily interested in a steady source of income, the EPS ratio can tell him/her the room a company has for increasing its existing dividend. Although, EPS is very important and crucial tool for investors, it should not be looked at in isolation. EPS of a company should always be considered in relation to other companies in order to make a more informed and prudent investment decision.
It is very worthwhile to track a company's earnings per share ratio on a trend line. If the trend is positive, then the company is either generating an increasing amount of earnings or buying back its stock. Conversely, a declining trend can signal to investors that a company is in trouble, which can lead to a decline in the stock price.
The calculation is:
(Net income after tax - Preferred stock dividends) ÷
Average number of common shares outstanding
Average number of common shares outstanding
For example, ABC Company has net income after tax of $1,000,000 and also must pay out $200,000 in preferred dividends. It has both bought back and sold its own stock during the measurement period; the weighted average number of common shares outstanding during the period was 400,000 shares. ABC's earnings per share ratio is:
($1,000,000 Net income - $200,000 Preferred stock dividends) ÷
400,000 Common shares
400,000 Common shares
= $2.00 per share
Generally a high P/E ratio means that investors are anticipating higher growth in the future. The average market P/E ratio is 20-25 times earnings. The P/E ratio can use estimated earnings to get the forward looking P/E ratio. Companies that are losing money do not have a P/E ratio.
