Equity Valuation

Earnings Per Share

Definition

What is Earnings Per Share?

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

Example in practice

₦500 million earnings divided by 100 million shares gives ₦5 EPS.

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

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

The accounting value of shareholders' equity.

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

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