Earnings Per Share Calculator

Calculate a stock's earnings per share ratio.

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Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Net income:Net income:Net income:Net income:

Net income:

Enter the net income reported by the company using numeric characters only (no currency sign or commas).

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Divs pd:Pref divs paid:Preferred dividends paid:Preferred dividends paid:

Preferred dividends paid:

Enter the dollar amount of the dividends paid on preferred stocks using only numeric characters 0-9, and a decimal point if applicable.

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Avg shrs:Avg shares out:Average shares outstanding:Average common shares outstanding:

Average common shares outstanding:

Enter the number of common shares outstanding. Preferably, this should be the weighted average. Clicking on the link on this line open the Weighted Average Shares Outstanding Calculator in a new window. If the company has any convertible securities, be sure to include those in your entry (fully diluted earnings per share).

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EPS ratio:EPS ratio:Earnings per share ratio:Earnings per share ratio:

Earnings per share ratio:

Based on your entries, this is the earnings per share (EPS) ratio of the stock you are investigating. You can now use this figure to calculate the company's P/E Ratio. You can also use the earnings per share ratio to compare a company's earnings with previous years' earnings (to see how earnings are trending), as well as to forecast future earnings growth.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Help and Tools

Learn

What EPS is and how it's calculated.

What is EPS?

EPS is an acronym for Earnings Per Share. Earning per share is one of the figures used in calculating a company's P/E Ratio (price to earnings ratio) and is also often used by investors to compare the growth (shrinkage) of a company's earnings from year to year, as well as to forecast the future growth of earnings.

EPS comparisons and forecasts can then be used for deciding which stock to purchase shares in and/or when to sell a shrinking EPS stock in exchange for buying a growing EPS stock.

How to Calculate Earnings Per Share

You calculate EPS by subtracting the preferred dividends paid from the net income and then dividing that result by the average number of common shares outstanding.

EPS Formula
i =Net income
d =Dividends paid
s =Average common shares outstanding
EPS =
i - d
s

For example, if a company reported a net income of $25,000,000, preferred dividends totaling $1,000,000, and an average of 12,500,000 common shares outstanding, the earnings per share ratio would be 1.92 ((25,000,000 - 1,000,000) ÷ 12,500,000 = 1.92).

Be Sure to Check Under the EPS Hood

One thing to be aware of when seeing an increase in a company's EPS ratio is that the increase may not mean the company had a growth in sales. This is because it's possible for a company to increase its EPS simply by buying back its stock.

This stock buyback reduces the number of outstanding common shares without effecting net-income -- thereby inflating the EPS figure. That's why it's important that you study the company's financial statements to determine the real reason the EPS increased.

What is Meant by Diluted EPS?

If a company has convertible bonds, convertible preferred stock, "in the money" options, or any other types of securities that can be converted to common stock, the company's EPS figure might be diluted from the increase in common shares outstanding that would occur if and when the securities are converted.

If a company has any of these convertible securities, they are then required to disclose what is referred to as, their fully diluted earnings per share.

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.