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Earnings Per Share (EPS)
EPS is net profit divided by the number of shares outstanding. It shows how much profit each share represents and is the denominator in the price-to-earnings ratio.
Why It Matters
Share prices follow earnings over the long run, so EPS growth matters more than almost anything else.
In India
A company earning ₹1,000 crore with 100 crore shares has an EPS of ₹10.