Earnings Per Share Calculator
This is an online Earnings per Share calculator.
What are Earnings per Share?
Earnings per share (EPS) is the monetary value of earnings per outstanding share of common stock for a company. In other words, it is the portion of a company’s profit that is allocated to each outstanding share of its common stock.
How to calculate EPS?
EPS is calculated by taking the difference between a company’s net income and dividends paid for preferred stock and then dividing that figure by the average number of shares outstanding.
EPS = Total Earnings / Outstanding Shares
- EPS = (net income – dividends on preferred stock) / average outstanding common shares
- EPS = ($350,000,000 – $220,000,000) / 200,100,000 = $0.65
Basic vs diluted earnings per share
There are often two EPS numbers reported, basic earnings per share and diluted earnings per share. There are some important differences between the two:
- Basic: Includes all of the company’s outstanding shares.
- Diluted: Includes all outstanding shares, as well as stock options, warrants and restricted stock units that could become outstanding shares in the future.