Earnings Per Share (EPS) — Key Metrics Guide
EPS measures the profit attributable to each ordinary share in issue.
Trailing EPS uses the most recent twelve months of reported earnings. Forward EPS is an analyst estimate for the coming year — we show trailing only, which comes from actual reported numbers.
EPS is the denominator in the P/E ratio and the foundation for dividend sustainability analysis. A company paying more in dividends than it earns per share is paying from reserves, which is unsustainable long-term.
Diluted EPS accounts for all potential shares from options and convertible bonds; basic EPS uses only shares currently in issue. We show whichever yfinance reports as the trailing figure.
Example
A company earning £500m net profit with 250 million shares in issue has a basic EPS of £2.00.
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