Thursday, 24 September 2015

What is EPS & Its Significance for an investor .

    EPS = Earnings Per Share
    Earnings per share, also known as EPS, This is a very important number in business. it tells  shareholders how much money each share of their stock earned for the company. It is important because, usually, when a company has a high earnings per share, it also has a high stock price, which makes investors happy
    High EPS also indicated that the company has good  profit ratio / margin and its number explain the probable return on your stock investment 
    How to Calculate EPS  :
    EPS = net income / average outstanding common shares  
    Regards
    Mukesh Kapri 


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