Earnings per share

(EPS or eps).

Profit attributable to ordinary shareholders ÷ Weighted average number of shares in issue during the period.

Profit after tax attributable to ordinary shareholders is often known as 'earnings' or 'net profit'.

EPS example

Earnings for the period are £40 million and the number of shares is 50 million.

EPS = £40m / 50m

= £0.80 (= 80 pence)

Relevant accounting standards include IAS 33 and Section 1 of FRS 102.

See also

• Bootstrap effect
• Diluted earnings per share
• DPS
• Earnings
• Economic value added
• IAS 33
• FRS 102
• Price to earnings ratio
• Shareholder value