EPS (earnings per share) splits net profit across every share. Growing EPS is what ultimately drags stock prices upward over years.
Distinguish trailing EPS (last twelve months, factual) from forward EPS (analyst estimates, hopeful). P/E ratios built on forward EPS look cheaper by construction.
Example
Profit of Rs 100 crore across 10 crore shares = Rs 10 EPS. At Rs 200, the P/E is 20x - now you see how the two metrics lock together.
In Ticker Screener
The tape popup's period-returns and P/E views both derive from earnings data - one click shows whether price or earnings moved faster.
Frequently asked questions
Diluted vs basic EPS?
Diluted counts convertible options and warrants too - always use diluted for conservative valuation.
Related terms
P/E Ratio
Price-to-earnings: what you pay for each rupee or dollar of yearly profit. The starting lens for cheap vs expensive.
Market Cap
Price times shares outstanding: the market's price tag for the whole company. Defines large, mid and small caps.
P/B Ratio
Price-to-book: market price versus net asset value per share. The classic yardstick for banks and asset-heavy firms.
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P/E, ROCE, ROE, P/B, dividend yield and market cap — live beside every price in your watchlist.