Meaning of “earnings basis” in the English Dictionary

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"earnings basis" in Business English

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earnings basisnoun [ S ]

uk us ACCOUNTING, FINANCE

a way of calculating the value of a company based only on its profits:

The company has always looked expensive on an earnings basis but from a free cash-flow perspective, it was not nearly as expensive.

(Definition of “earnings basis” from the Cambridge Business English Dictionary © Cambridge University Press)