Earnings per share
From ACT Wiki
Financial ratio analysis - performance ratios.
(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.
