EPS (Earnings Per Share) is a company's net profit divided by its total shares outstanding — how much profit is attributable to each share.
EPS = Net Profit ÷ Weighted Average Shares Outstanding
A rising EPS year-on-year is one of the clearest signs of a genuinely growing business, because it means profits are growing faster than share count.
Basic vs diluted EPS
Basic EPS uses the current share count. Diluted EPS also counts shares that could be created through ESOPs, convertibles, or warrants. For unlisted companies with large ESOP pools, diluted EPS can be meaningfully lower — worth checking in the annual report or DRHP.
Why it matters for unlisted shares
EPS is the denominator in the P/E ratio, the most common valuation multiple. If you know the unlisted share price and the company's EPS, you can compute an implicit P/E and compare it against listed peers in the same sector.
Example: An unlisted fintech with ₹12 EPS trading at ₹240 per share implies a 20× P/E — reasonable if similar listed fintechs trade at 25×.