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Company Analysis

Earnings per share

Net income attributable to common shareholders divided by weighted-average shares.

Plain languagePractical exampleConnected reading
01

What is it?

Net income attributable to common shareholders divided by weighted-average shares.

02

Why does it matter?

It translates profit to a per-share basis and underpins ratios such as P/E.

03

How should it be read?

Check diluted shares, capital actions and one-off earnings.

04

Common mistake

Assuming new share issuance cannot dilute per-share results when total profit grows.

IN PRACTICE

A simple example

Profit of 100 million over 50 million weighted shares gives EPS of 2.

RELATED CONCEPTS

Follow the connection

Price-to-earnings ratioReturn on equityDividend payout ratio
USE THE CONCEPT

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