EPS (earnings per share) is a company's net profit divided by its number of shares. The PE ratio is the share price divided by EPS — how many rupees investors pay for one rupee of yearly profit. A PE of 20 means the price is 20 times the annual earnings.
Formulas
- EPS = Net profit attributable to shareholders ÷ Number of shares
- PE ratio = Market price per share ÷ EPS
Annualised EPS in NEPSE reports
Nepali companies publish quarterly reports with EPS for the year to date. To compare with a full year, it is annualised: Q1 × 4, Q2 × 2, Q3 × 4 ÷ 3. Seasonal businesses (hydropower in the monsoon, for example) can look better or worse than they are on an annualised basis.
What is a good PE?
There is no single number. Compare a company's PE with others in the same sector and with its own history: banks usually trade on lower PEs than hydropower or insurance. A negative EPS makes PE meaningless; a very high PE means the price assumes strong future growth.
Are EPS and PE the same?
No. EPS is profit per share in rupees; PE is a ratio that relates that profit to the share price.
Is a high EPS always good?
A rising EPS is a good sign, but compare it with the price. Bonus shares increase the share count, so EPS falls after a bonus even if profit is unchanged.
Updated 27 October 2026. General information, not investment advice. Rules can change — check the latest NEPSE, CDSC or SEBON notice. Editorial policy · More NEPSE guides