📄 Earnings Per Share Calculator
Enter a company’s net income, preferred dividends, and weighted average shares outstanding to calculate its earnings per share (EPS).
What is earnings per share?
Earnings per share (EPS) measures how much profit a company generates for each outstanding share of its common stock. It’s one of the most widely watched metrics in fundamental stock analysis and is used to calculate the price-to-earnings ratio.
How this calculator works
The formula is: EPS = (Net Income – Preferred Dividends) ÷ Weighted Average Shares Outstanding. Preferred dividends are subtracted first because that income belongs to preferred shareholders, not common shareholders. The weighted average share count accounts for shares issued or bought back during the period.
- Higher EPS generally indicates greater profitability per share, though it should be compared against share price and industry peers for context.
- Companies with no preferred stock can simply enter $0 for preferred dividends.
This calculator is for general educational and planning purposes only and is not investment advice.