Earnings Per Share (EPS) is a key financial ratio that indicates how much profit is assigned to each outstanding share of a company’s stock. It helps investors evaluate profitability and compare companies.

Basic EPS

Calculated when a company has a simple capital structure. It divides net income (minus preferred dividends) by average outstanding common shares.

Diluted EPS

Calculated when a company has a complex capital structure. It assumes all convertible securities (like options, bonds, or preferred shares) are converted into common stock.

The formula for calculating earnings per share is:

EPS = (Net Income – Preferred Dividends) ÷ Average Outstanding Common Shares

• Net Income: Profit after taxes, expenses and interest.
• Preferred Dividends: Payments made to preferred shareholders.
• Outstanding Shares: Number of shares issued and currently held by investors.

1. Enter the Net Income of the company.
2. Enter the Preferred Dividends (if any).
3. Enter the Number of Outstanding Shares.
4. Click the Calculate EPS button.
5. Get instant, accurate EPS results.

• Measure Profitability: EPS shows how profitable a company is per share.
• Investment Decisions: Helps investors compare companies and identify growth opportunities.
• Performance Tracking: Companies use EPS to evaluate yearly performance and growth trends.
• Dividend Insights: Indicates how much profit may be available for distribution as dividends.

• Investors: To estimate return on investment and compare companies.
• Company Owners: To evaluate financial health and growth performance.
• Consultants: To provide clients with financial analysis for investment advice.
• Traders: To make quick buy/sell decisions based on profitability.

• Free & Easy to Use: 100% free online, no downloads needed.
• Accurate Results: Advanced algorithm ensures reliable calculations.
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• What is a good EPS? Generally, higher EPS indicates better profitability, but it depends on the industry.
• Can EPS be negative? Yes, if a company reports a net loss.
• What’s the difference between basic and diluted EPS? Basic EPS is simpler, while diluted EPS accounts for convertible securities.
• How often is EPS calculated? Typically every quarter and annually.
• Is EPS the only factor in stock evaluation? No, investors also consider P/E ratio, revenue growth and debt levels.