The valuation of relationship between EPS, GST and demonetization of Indian industries

Abstract

To determine the valuation of companies’ shares, the individual always consider the earning per share (EPS). There are lot of literature review provides the information of how much the individual investors considering the importance of earnings per shares before their investment to one industries. Earnings per shares will help the investors to analyse on the growth of their investment from the company. The total number of outstanding shares will divide the net income of the company to find the value of the EPS. This tool used by all the security market investors before they are purchasing the shares. There are lot of research gone through by various researcher by using the EPS to determine the share price of various industries across the globe. In India, after the implementation of GST and demonetisation there are plenty of assumption and expectation spread across regarding the GDP of the country, Profit of the business and also the performance of share market. People are not aware what was the earnings of each individual received when they did investment during this period. This paper analyse how much the EPS value has been received by the investors of security market after the implementation of GST and demonetisation.