Earnings Per Share Calculator
Calculate EPS to measure company profitability on a per-share basis.
Calculate EPS
About Earnings Per Share (EPS)
Earnings Per Share (EPS) is a financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock. It's a key indicator of company profitability.
EPS Formula
EPS = (Net Income - Preferred Dividends) / Outstanding Shares
Why EPS Matters
- Measures company profitability on per-share basis
- Used to calculate P/E (Price-to-Earnings) ratio
- Helps compare profitability across companies
- Key metric for stock valuation
- Tracked by analysts and investors
Types of EPS
- Basic EPS: Uses actual outstanding shares
- Diluted EPS: Includes potential shares from options/convertibles
- Trailing EPS: Based on past 12 months
- Forward EPS: Based on projected earnings
Interpreting EPS
- Higher EPS: Generally indicates better profitability
- Growing EPS: Shows improving company performance
- Negative EPS: Company is losing money
- Compare within industry: EPS varies by sector