Friday, February 13, 2009

EPS






EPS or earning per share is an indicator that tells you how much net profit is compared to total number of shares issued.

E.g. SingTel made S$3,960.2M in FY08. Number of shares: 15,920.8M

EPS = 3,960.2/15,920 = S$0.249

Similarly, EPS for:
- Starhub: 330.3/1764.423 = S$0.187
- M1: 171.8/893.878 = S$0.192

有何意义

You will notice that EPS does not tell you very much until you relate it to PE, price earning ratio.

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