Rankify

Earnings Per Share (EPS) Calculator

Calculate Earnings Per Share (EPS) easily by entering the net income, preferred dividends, and the total number of outstanding shares. EPS is an important metric for investors to evaluate a company’s profitability.

What is Earnings Per Share (EPS)?

Earnings Per Share (EPS) is a financial metric that shows how much profit a company makes for each outstanding share of its stock. It is a key indicator of profitability and is widely used by investors to assess a company’s performance.

EPS Formula

EPS = (Net Income − Preferred Dividends) ÷ Outstanding Shares

Why is EPS Important?

  • Investor Insight: Helps measure a company’s profitability.
  • Valuation Tool: Often used in calculating the Price-to-Earnings (P/E) ratio.
  • Comparison: Allows investors to compare profitability across companies in the same sector.

How to Use EPS Calculator

  1. Enter the company’s net income.
  2. Enter preferred dividends (if any). If not, leave it blank.
  3. Enter the total number of outstanding shares.
  4. Click on Calculate EPS to get the result.

Popular Tools

Related Tools