Fundamental Glossary / Profitability Metrics
Basic EPS
Earnings per share using only the shares currently outstanding, weighted for how long they were outstanding.
Formula
Profit attributable to owners / weighted average ordinary shares.
What it means
Basic EPS does not pretend that options have been exercised. It is the profit belonging to shares that already exist.
The share count is a weighted average. A large issue in the last week of the year barely moves this year's basic EPS and fully affects next year's.
How to read it
Use basic EPS to see what current owners earned. Use diluted EPS before you decide the shares are cheap on a P/E, so you do not ignore instruments that can expand the count.
What to watch
Bonus issues and splits are adjusted backwards so that per-share history stays comparable. A data series that was not adjusted will show a false collapse in EPS on the ex-bonus date.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.