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Earnings

Discussion in 'Investment Analysis' started by abhijitupsc, Mar 21, 2018.

  1. abhijitupsc

    abhijitupsc Contributor

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    Good evening all..

    When one talks about earnings growth, what does he talk about?
    PAT growth or EPS growth? Or something else?

    Sent from my Redmi Note 4 using DIY Technical Analysis mobile app
     
  2. shabbir

    shabbir Administrator Staff Member

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    Overall growth on all front but more importantly the growth in absolute earnings of the company and so yes PAT and PBT are better reflective of earnings growth. EPS is more like per share average and so no it is not considered a direct indicator of earnings growth because company may issue bonus and splits that can impact the EPS on mathematical front.
     
  3. abhijitupsc

    abhijitupsc Contributor

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    nirajshah likes this.