Fundamental Glossary / Profitability Metrics
Earnings Per Share (EPS)
Profit attributable to shareholders, divided by the number of shares.
Formula
PAT attributable to owners / weighted average shares. Basic and diluted counts differ.
What it means
EPS puts profit on a per-share basis so that a company which issued new shares is not credited with growth that the old shareholder does not fully own.
Reported EPS can be basic or diluted, from continuing operations, and before or after exceptional items. Headlines often pick the kindest of these.
How to read it
Growth in EPS is what long-term shareholders compound, together with dividends. Prefer EPS growth that comes from profit growth, not only from a shrinking share count.
What to watch
A buyback lifts EPS even when total profit is flat. That can be a fine use of cash, but it is not operating growth. Also watch the difference between basic and diluted EPS when options or convertibles are large.
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.