Calculate EPS, a key profitability indicator representing the portion of a company's profit allocated to each outstanding share.
Financial Inputs
Profitability Results
Earnings Per Share (EPS)$1.90
Earnings for Common$950,000
Outstanding Shares500,000
Income Allocation
About this calculator
Overview
Earnings Per Share (EPS) is a critical standard in stock market valuation. It represents the net profit earned by a company for each outstanding share of its common stock.
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Pro Tips
Investors use EPS to determine a company’s corporate profitability and to compute the P/E ratio.
Diluted EPS considers all possible shares, such as convertible bonds or warrants, providing a more conservative view.
Persistent growth in EPS often signals strong fundamental performance and can drive stock price appreciation.
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Fun Facts
Formula: (Net Income - Preferred Dividends) / Weighted Average Common Shares
