Earnings Per Share (EPS) Calculator
This tool will guide you in calculating your earnings per share. It also provides you with an exact formula for calculating your EPS.
Earnings Per Share Calculator
Earnings Per Share:
Table of contents
|◦Earnings per share definition|
|◦Formula for earning earnings per share|
|◦How to calculate earnings per shares|
Earnings per share definition
Earnings per share (EPS), is the percentage of a company’s total profit that is allocated to each shareholder’s shares . This variable is crucial to determine whether a stock is profitable.
Comparing the EPS figures of one company over a longer time period is one way to make informed investments. To find the most profitable company, you can compare the EPS values of several companies in the same industry.
Earnings per Share take into account only common stock; preferred stock has no effect on the value of the shares.
Formula for earning earnings per share
This EPS formula can be used to calculate earnings per share:
EPS = (Net income – Dividends on preferred stock) / Average outstanding common shares
Net income - The total earnings (profit) of a company is the sum of all costs and the total revenues.
Dividends on preferred stock - A class of assets giving priority to the common stock over preferred stock. While preferred shares offer a better yield and are more protected (in the event of company liquidation, they receive the money first), the shareholders don't have voting rights. The preferred stock dividends are the quarterly or monthly payments that the shareholders receive.
Number of shares This number fluctuates with time. It can increase when the company issues more shares or decrease when it buys back shares.
How to calculate earnings per shares
Find the net revenue for the company. Let's say it is $3.12 trillion.
Calculate the total dividends for preferred stock . It can be assumed that it equals $200 million.
Find the total number of outstanding common stocks for this company. You can choose from 333.4 million.
Use the earnings-per-share formula:
This company's EPS value is $8.76. The company could increase its value if it bought back 50 million shares.
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Earnings Per Share (eps) Calculator English
Published: Mon Jul 11 2022
In category Financial calculators
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