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Earnings Per Share (EPS)
Rating: 5.0 out of 5(2 ratings)
305 students

Earnings Per Share (EPS)

Basic EPS, Diluted EPS, Weighted Average Shares, Right Issue, Bonus Issue, Partly Paid Shares, Ranking in EPS etc.
Created byCA Nilesh Phadke
Last updated 6/2024
English
English [Auto],

What you'll learn

  • Earnings Per Share
  • Basic EPS with Weighted Average Shares
  • Basic EPS when Bonus issue, Right Issue, Partly Paid Shares are given
  • Diluted EPS when Convertibles Loan Stock , ESOPs - Vested & Unvested are given
  • Diluted and Anti diluted EPS when ranks need to determine

Course content

1 section • 9 lectures • 59m total length

  • EPS - Calculation of basic EPS including Calculation of Weighted Shares5:08

    Learn to calculate basic earnings per share by dividing net profit attributable to equity shareholders by the weighted average number of equity shares outstanding, using period days.

  • EPS - Calculation of basic EPS when Bonus issue is given6:38

    Learn to calculate basic earnings per share (EPS) when a bonus issue occurs, using net profit attributable to equity shareholders divided by weighted average outstanding shares.

  • EPS - Calculation of basic EPS when Partly Paid Shares are given4:46

    Learn to calculate earnings per share by dividing net profit attributable to equity shareholders by the weighted average number of equity shares outstanding, including partly paid shares via direct proportion.

  • EPS - Calculation of basic EPS when Right Issue is given5:53

    Learn how to calculate basic earnings per share with a right issue, using net profit attributed to equity shareholders and weighted average shares, including determining the theoretical ex-right price.

  • EPS - Calculation of Basic & Diluted EPS when convertible loan stock is given5:21

    Learn to calculate basic and diluted earnings per share (EPS) when convertible loan stock is issued, including conversion into shares and the impact on profit attributable to equity holders.

  • EPS - Calculation of Basic & Diluted EPS when ESOPs are given4:01

    Calculate basic and diluted earnings per share (eps) when esops dilute shares, using profit for the year, shares outstanding, and exercise and market prices to obtain 2.40 and 2.29.

  • EPS - Basic & Diluted EPS with loss when Vested & Unvested Option is given7:22

    Learn to compute basic and diluted earnings per share by adjusting for options, including vested and unvested options, using weighted average shares and IFRS two cost.

  • EPS - Calculation of Basic & Diluted EPS when multiple case with Ranks are given11:21

    Calculate basic earnings per share and determine diluted earnings per share when multiple dilutive instruments exist, ranking by incremental earnings per share and excluding antidilutive results.

  • EPS -Calculation of Basic & Diluted EPS when multiple cases with Ranks are given9:06

    Master calculating basic and diluted earnings per share with multiple dilutive cases. Rank options, convertible preference shares, and bonds by incremental EPS to determine diluted EPS.

Requirements

  • Basic Knowledge of English and Mathematics is required

Description

Earnings Per Share: Earnings per Share is important terminology every learner of finance and accounts need to learn. Earnings per share is common corporate terminology used to carry out corporate value. Earnings Per Share (EPS) is basically calculated as net profit attributable to equity shares divided by number of equity shares outstanding as on particular date. Earnings per share is significant financial parameter used to know Company’s financial health. Higher EPS reflects greater profitability from the company.

EPS of the company helps investing company the most suitable investment option. With EPS one can determine company’s existing and future stock value. EPS is used to calculate Price Earnings Ratio which is ultimately used to analyze share price of the company.  Year on year steadily increasing EPS  is considered to be good investment option.

There are basically 2 types of EPS i.e. Basic EPS and Diluted EPS.

For calculation of basic EPS one need to divide company’s profit by number of shares outstanding.

For calculation of diluted EPS one need to consider all possible dilutions like when options are converted into shares.

Diluted EPS is used when company is likely to witness a dilution because of Employee Share option Plan (ESOP) or other similar cases,

Thus to conclude Earnings per share with other financial parameters give idea about company’ profitability and market performance.

Who this course is for:

  • This course is for CA, MBA, CIMA, CWA, CMA ,Bcom , Mcom Students , Learners of Finance & Accounts etc.

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