Equity Valuation
Earnings Per Share
Definition
What is Earnings Per Share?
Net incomeProfit remaining after operating costs, financing costs, taxes, and other recognised items. attributable to ordinary shareholders divided by weighted average ordinary shares.
Example in practice
How This Looks in Practice
₦500 million earnings divided by 100 million shares gives ₦5 EPS.
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Related Terms
Equity Valuation
Diluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Equity ValuationBook Value
The accounting value of shareholders' equity.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.