What is earning per share? What does it show?

What is earning per share? What does it show?


Earning per Share (EPS) is one of the ratios of miscellaneous group, which measures the profits available to the equity shareholders on a per share basis. It is calculated on the current profits. It indicates increasing trend of current profits per share.

Formula to calculate EPS = (Net profit after taxes - Preference Dividend) / No. of equity shares outstanding
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