Earnings per share (EPS)

Earnings per share, or EPS, connects a financial result with the number of shares. The basic calculation uses profit attributable to ordinary shareholders and the weighted-average number of those shares during the period. Diluted EPS includes potential ordinary shares when their inclusion is dilutive under the applicable accounting rules.

Calculation example

If the profit of a hypothetical company is 120 thousand roubles and the weighted-average number of shares is 6 thousand, basic EPS is 20 roubles. For a real company, check the rights attached to different classes of shares and changes in their number during the period.

Limits of interpretation

EPS is not a dividend: profit may remain in the business. The indicator can also rise after the number of shares is reduced, even without growth in total profit. When comparing periods, account for stock splits and one-off results. For the P/E multiple, use a price and EPS that relate to compatible conditions and periods. Related reading: [market capitalization and multiples](/guides/market-cap-and-multiples/), [capital dilution](/glossary/razvodnenie-kapitala/) and [dividend](/glossary/dividend/).

General financial concepts; not an individual recommendation under Russian jurisdiction.

Source references retained: term-earnings-share and term-ias33; basic and diluted EPS, ordinary shareholders, weighted-average shares, 120 thousand roubles, 6 thousand shares, 20 roubles, share classes, share-count changes, dividends, stock splits, one-off results and P/E comparability caveats preserved.

Earnings per share (EPS)

Calculation example

Limits of interpretation

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