Abstract:
The stock market is considered as the major indicator of the success of any country. The various dynamics operating
therein are of enormous interest for a financial analyst, policymakers, stakeholders or more or less the majority of the people
across the globe. Within the stock market, the most interested and controversial topic is a determination of valuation mechanics
by which share prices fluctuations can be understood and a model fit for investment criteria could be established. Boundless
factors have discovered and some are still in the process of discovery to get a hang of share prices fluctuations mechanism. So
keeping this in mind this research is targeted to explore a linkage between earning per share (EPS) and share prices, taking a
sample of five fertilizer Sector Company for a period of 12 years making the aggregative amount of data up to 60 observations.
Data is collected from the company fundamentals released in annual reports of the company. In order to explore the causal
mechanism between the two variables, a regression test is employed. Pearson correlation is also used as an extension to the
analysis. The results of the study approved the previous literary contributions in this area by highlighting the highly statistically
significant positive relationship between share prices and EPS since F( 1,58)=191.205, p<0.05.