Basic EPS Chapters
00:00 Introduction
00:56 – What is Basic EPS?
02:05 – Basic EPS Formula
04:10 – Basic EPS Calculation
04:29 – Simple vs Complex Capital Structure
06:10 – Basic vs Diluted EPS
In this video, we will talk about the Basic EPS, how it is
calculated and how it is used in financial analysis and valuations.
What is Basic EPS?
Basic earnings per share is a profitability metric that computes the net income
of the company for each common stock.
Formula for Basic EPS = (Net Income – Preferred Dividends)/Number of
Common Shares
Importance of Basic EPS:
1. Measures the profitability
2. Easy to maneuver
3. Helps figure out the PE ratio of a comparable company
4. Higher EPS indicates higher net profit
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https://www.wallstreetmojo.com/basic-eps/
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