After-tax profit per share generally refers to earnings per share, that is, earnings per share (EPS), which refers to the ratio of after-tax profit to the total number of shares . It is the net profit or the net loss of the company that ordinary shareholders can enjoy for each share they hold.
Earnings per share is usually used to reflect the operating results of the company, measure the profit level and investment risk of common stocks, and is the basis for investors and other information users to evaluate the profitability of the company, predict the growth potential of the company, and then make relevant economic decisions. one of the most important financial indicators. In the income statement, Article 9 lists the “basic earnings per share” and “diluted earnings per share” items.
Among the many tools for basic analysis of stock investment , EPS is also one of the most common reference indicators, like indicators such as price-earnings ratio , price -to-book ratio, and discounted cash flow.
The ratio reflects after-tax profit per share. The higher the ratio, the more profit is created. If the company has only ordinary shares, the net income is net profit after tax, and the number of shares refers to the number of ordinary shares outstanding. If the company still has preferred stock , the dividends distributed to preferred shareholders should be deducted from the net profit after tax .