EPS is how much a share earns for its company.First you must know how much number of shares a company issued in the market.For example we will assume a company has issued 10 lakh shares in the stock market and the companies net profit for the financial year is Rs 50 lakhs.
Now 10 lakh shares have earned Rs 50 lakhs so one share of the particular company has earned Rs 5 for the year.This is one of the basics of fundamental analysis.
Monday, August 3, 2009
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