We always struggled to serve you with the best online calculations, thus, there's a humble request to either disable the AD blocker or go with premium plans to use the AD-Free version for calculators.
Disable your Adblocker and refresh your web page 😊
Table of Content
The earnings per share calculator calculates a company’s profit divided by the outstanding shares of its common stock. The EPS calculator resulting in numbers and estimation serves as an indicator of a company’s profitability.
The earnings per share calculation (EPS) is the ratio between the net profits generated by a company relative to its number of common shares outstanding.
To calculate earnings per share, you need to subtract the dividend yield from the net income and divide it by the average outstanding shares.
The formula for the earnings per share calculation is:
EPS = (Net income – Dividends on preferred stock) / Average outstanding common shares
You can determine a company’s financial position by the earnings per share calculator. The earnings per share calculations are critical indicators of a company’s current financial position with respect to the stock exchange.
Let’s suppose the net income of a company is $3.12 billion and the dividend on the preferred stock is equal to $200 million. The number of outstanding common shares is $333.4 million, then how to calculate earnings per share?
Then to calculate earnings per share, we can use the formula:
EPS = (net income – dividends on preferred stock) / average outstanding common shares
Then how to calculate basic earnings per share:
EPS = ($3,120,000,000 – $200,000,000) / 333,400,000 = $8.76
The EPS value for this company is equal to $8.76, and the earnings per share calculator enable us to decide the earning per share.
There are various applications of the earnings per share calculation:
It is easy to calculate earnings per share with our EPS calculator by the following steps:
Preferred stock is a type of equity that represents the ownership of a company and the right to claim income from the company’s operations.
The common stocks are generally floated in the market. The owner of the common stock can claim their profitability and voting right. To calculate EPS divide by the outstanding common stock.
The dividend yield is a financial ratio and it is the share price that the company pays out in dividends each year to its shareholders.
From the source of investopedia.com: How is EPS calculated?
From the source of wallstreetprep.com: What is EPS