Pathshala
What is EPS?
What is EPS?
Earnings per Share is the net profit earned by the Company divided by number of equity shares.
Ex:
Net Profit of the Company
EPS = --------------------------------------------
Number of Shares outstanding
What is PE?
What is PE?
PE or Price to Earnings multiple ratio is one of the important measures to understand valuation of shares.
PE multiple = Current Market Price / Earnings Per Share (EPS)