Earnings multiples and Earnings per share: Difference between pages

Revision as of 13:18, 1 May 2017

(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.

@@ Line 1: / Line 1: @@
-A method of business valuation which is based on accounting earnings and the ratio of value to earnings of a comparable business (or a comparable group of businesses).
+(EPS or eps).
+Profit attributable to ordinary shareholders &divide; 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'.
+<span style="color:#4B0082">'''''EPS example'''''</span>
+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]]
-* [[EBIT multiple]]
+* [[Economic value added]]
-* [[EBITDA multiple]]
+* [[IAS 33]]
+* [[FRS 102]]
 * [[Price to earnings ratio]]
+* [[Shareholder value]]