Series XVEasyFinancial Statements Analysis

Earnings Per Share (EPS) is calculated as:

ANet profit attributable to equity shareholders divided by the weighted average number of equity shares outstandingcheck_circle
BMarket capitalisation divided by net profit
CTotal revenue divided by number of shares
DDividend divided by share price

Correct answer

A. Net profit attributable to equity shareholders divided by the weighted average number of equity shares outstanding

lightbulbDetailed Solution

Basic EPS = net profit available to equity shareholders (after tax and preference dividends) ÷ weighted average number of equity shares outstanding during the period. It expresses profitability on a per-share basis and feeds directly into the P/E ratio.

Reference: NISM Series XV Research Analyst, Chapter 2.

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