Earnings Per Share (EPS) Calculator

Calculate a company’s profitability on a per-share basis with our simple and accurate EPS calculator.

Earnings Per Share (EPS)

About the Earnings Per Share (EPS) Calculator

The Earnings Per Share (EPS) Calculator is a vital tool for investors and anyone interested in a company's financial health. It measures the amount of a company's profit allocated to each outstanding share of common stock, serving as a key indicator of profitability.

How to Use the Calculator

  1. Net Income ($): Enter the company's total net income for the period.
  2. Preferred Dividends ($): Enter the total dividends paid to preferred shareholders. If none, you can leave this blank or enter 0.
  3. Average Outstanding Shares: Enter the average number of shares outstanding over the period.
  4. Click the "Calculate EPS" button to see the result.

Frequently Asked Questions (FAQs)

What is Earnings Per Share (EPS)?
Earnings Per Share (EPS) is a financial ratio that indicates the profitability of a company. It is calculated by dividing the company's net income (less any preferred dividends) by the number of its average outstanding common shares.

Why is EPS important?
EPS is a key metric used by investors to determine a company's financial health and profitability on a per-share basis. A higher EPS generally indicates greater value because investors will pay more for a company's shares if they think it has higher profits relative to its share price.

Is this tool free to use?
Yes, this EPS Calculator is 100% free. All calculations are performed instantly in your browser.

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