Earnings Per Share (EPS) Calculator

Calculate a company's profitability per outstanding share with our AI-powered financial tool

Calculate EPS

$
Please enter a valid net income
$
Please enter a valid dividend amount
Shares must be greater than zero
Basic EPS
Diluted EPS

EPS Result

Earnings Per Share
0.00
Basic EPS
Net Income $0.00
Preferred Dividends $0.00
Outstanding Shares 0
EPS = (Net Income - Preferred Dividends) / Outstanding Shares
(0 - 0) / 0 = 0.00

About EPS Calculator

What is Earnings Per Share (EPS)?

Earnings Per Share (EPS) is a key financial metric that measures a company's profitability on a per-share basis. It represents the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's financial health and performance.

EPS is widely used by investors to evaluate a company's profitability and to compare the financial performance of companies in the same industry. A higher EPS typically indicates greater profitability and is generally viewed as a positive sign by investors.

How to Use the EPS Calculator

Our Earnings Per Share calculator is simple to use:

  1. Enter the company's Net Income (total profit after taxes)
  2. Optionally enter any Preferred Dividends (dividends paid to preferred shareholders)
  3. Enter the number of Outstanding Shares (common shares currently held by all shareholders)
  4. Select your preferred currency from the dropdown menu
  5. Choose between Basic or Diluted EPS calculation
  6. Click "Calculate EPS" to see the result

EPS Formula

The formula for calculating Basic Earnings Per Share is:

Basic EPS = (Net Income - Preferred Dividends) / Weighted Average Outstanding Shares

For Diluted EPS, the formula accounts for all convertible securities:

Diluted EPS = (Net Income - Preferred Dividends) / (Weighted Average Shares + Conversion of Convertible Securities)

Our calculator automatically computes both types of EPS based on your input.

Why EPS Matters

Earnings Per Share is one of the most important metrics in financial analysis for several reasons:

Profitability Indicator

EPS shows how much profit a company generates per share, making it easy to compare companies of different sizes.

Investment Decisions

Investors use EPS to evaluate a company's financial performance and potential for future growth.

Valuation Metric

EPS is a key component in calculating the Price-to-Earnings (P/E) ratio, a popular valuation metric.

Performance Tracking

Tracking EPS over time helps investors assess a company's growth trajectory and management effectiveness.