Medium3 of 7

Earnings per share (EPS)

Each share's slice of the company's net profit.

The formulaEPS = net profit ÷ number of shares

Example

A company with a net profit of 5,000,000 rials and 50,000,000 shares:

EPS5,000,000 ÷ 50,000,000

Result= 0.100 OMR per share

Track EPS over several years: steady growth is a good sign; a sudden jump is worth asking about (a one-off asset sale, for instance).

If a company issues new shares, EPS can fall even when total profit rises.

All content on this site is for educational purposes only and is not investment advice or a recommendation. Past performance does not guarantee future results. Consult a licensed adviser before making any investment decision.