Earnings Per Share (EPS) Calculator
Calculate the foundational metric of corporate stock valuation. Earnings Per Share (EPS) measures the net monetary profit allocated to each outstanding common share, serving as the critical driver of stock prices and P/E ratios.
Bottom-line net corporate profit reported on income statement
Contractual dividends owed to preferred shareholders
Time-weighted count of outstanding common shares during the reporting period
Net dollar earnings generated per outstanding common share
How to Use This Calculator
- Enter the company’s net income from the income statement (Form 10-K or 10-Q).
- Enter any preferred stock dividends distributed or declared during the fiscal period.
- Enter the weighted average number of common shares outstanding.
- Review the basic EPS value to benchmark against analyst consensus estimates.
Formula & Calculation Methodology
Basic EPS subtracts senior preferred claims from bottom-line profit before dividing by the time-weighted volume of common equity.
Worked Example
Net income of $50M with $2M preferred dividends and 10M shares outstanding
Frequently Asked Questions
What is the difference between Basic EPS and Diluted EPS?↓
Basic EPS uses only currently issued shares. Diluted EPS accounts for all potential convertible securities (convertible bonds, options, and warrants) that could convert into common shares, reflecting worst-case dilution.
Can Earnings Per Share be negative?↓
Yes. When an enterprise incurs an operating or net loss, EPS is negative (Net Loss Per Share), indicating the company burned shareholder capital over that financial quarter.
How do share buybacks impact EPS?↓
When a corporation repurchases and retires its own common stock, the share count denominator shrinks, mathematically increasing EPS even if aggregate corporate net income remains flat.
Why are preferred dividends subtracted from net income?↓
Preferred stockholders hold legal priority over common shareholders. Common equity holders only own residual earnings remaining after contractual preferred dividends have been satisfied.
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Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.