How to calculate EPS?

Question

I try to calculate EPS
EPS=Netprofit/Outstanding shares
I take Sakhti sugaer company
It's NetProfit=95.28 (P&L)
Total Share Capital=43.37
EPS=95.28/43.37=2.1
But in balance sheet tell EPS=27.98
How come this 27.98 pleace explain to me

Answer 1

I'm not sure if you got the denominator right. EPS is net earnings divided by the weighted-average NUMBER of shares outstanding over the reporting term, not by the dollar value of the share capital. And because you can't work out the weighted-average no. just by looking at the accounts, you won't be able to work out the EPS yourself, you can only get a close estimation using the year-end no. of outstanding shares, which is available from the accounts.

Answer 2

Formula To Calculate Eps

Answer 3

There are three formulas to see:

Earnings Per Share (Basic Formula): EPS = profit/weighted average common shares

Earnings Per Share (Net Income Formula): EPS = Net Income/weighted average common shares

Earnings Per Share (Continuing Operations Formula): EPS = Income from Continuing Operations / weighted average common shares

See the second link for specific instructions on how to do this using Excel.

Answer 4

If I remember correctly... EPS is calculated as

Net profile before tax / number of alloted shares.

Hope this helps.

Regards,
Sunil
http://www.careercurry.com

Answer 5

The earning per share (eps)=profit after tax/number of shares in the market.
i.e. eps=pat/no. of shares.
it may depend that if u r interested in calculating the diluted eps or the basic eps,for diluted eps u have to consider all the securities in the market to be exercised as for warrants convertibles and so the number of share will increase and the basic eps is always greater then the diluted eps.