Equity Valuation

Basic Earnings Per Share

Definition

What is Basic Earnings Per Share?

Earnings per share calculated using actual weighted average ordinary shares outstanding.

Example in practice

Basic EPS excludes potential shares from options and convertible securities.

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Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

Earnings per share assuming potentially dilutive securities convert into ordinary shares.

The accounting value of shareholders' equity.

Cash generated or used by a company's core operations.

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