Page 531 INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI) ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XI Issue V May 2024 www.rsisinternational.org Evaluating the Effect of Fundamental Analysis on Earnings Per Share Concept in Stock Valuation in the Zimbabwe Stock Exchange Market. Brian Basvi University of Zimbabwe DOI: https://doi.org/10.51244/IJRSI.2024.1105036 Received: 15 May 2024; Accepted: 22 May 2024; Published: 08 June 2024 ABSTRACT A technique for analysing a security’s intrinsic value is called fundamental analysis. It involves looking at relevant financial, economic, and other qualitative and quantitative aspects. Earnings Per Share (EPS), a crucial metric in fundamental analysis is calculated by dividing a company’s net income by the total number of outstanding shares. With more than 70 listed businesses the Zimbabwe Stock Exchange (ZSE) is the primary stock exchange in Zimbabwe. This study applies the EPS financial ratio and stock valuation techniques to historical stock data from 68 companies listed on the Zimbabwe Stock Exchange. According to a ZSE study EPS significantly affects share prices that are listed on the market. The study’s objective was to assess how fundamental analysis affected the idea of EPS in ZSE stock valuation. It concluded that EPS is an important consideration for investors when they make judgments about their investments. According to the study’s findings, fundamental analysis is a useful tool for ZSE investors since it offers insightful information about a company’s financial performance and aids in decision-making. Investors can have a better understanding of a company’s underlying worth and prospects for future growth by looking into EPS and other basic aspects. Keywords: Fundamental Analysis, Stock Valuation, EPS INTRODUCTION The foreign economy’s rapid growth has a significant impact on the policies that the Zimbabwean government implements. The government’s policies caused Zimbabwe’s economy to be less stable and more erratic. This created concerns for the general public as well as government-owned and private businesses. This phenomenon brings attention to the fact that Zimbabweans can earn additional income from other sources, like as salaries or earnings from other businesses, in addition to their fixed income. There are many different kinds of enterprises that are essentially run as investment activities or to generate additional revenue. When considering a firm’s future prospects from the perspective of an investor one of the key indicators is the degree of growth the company has had, which may be determined by looking at linked. LITERATURE REVIEW This section seeks to explain fundamental analysis and earnings per share principles and concepts (EPS). The stages of fundamental analysis and the variables that influence them will be examined. The idea of EPS and how it influences stock price will also be covered in this section. From the perspective of the investor determining the degree of the company’s growth through an examination of associated economic and financial factors also known as through a process known as fundamental analysis is one of the key indications for evaluating the prospects of the business going forward. Ratio analysis is one tool available to investors; profitability ratios are the best ones to utilize. Taking note of this indication is crucial in