EPS Calculator
Calculate basic and diluted Earnings Per Share (EPS) for any company. Enter net income, preferred dividends, and shares outstanding to determine how much profit is attributable to each outstanding share of common stock.
EPS Calculator
FAQ
What is Earnings Per Share (EPS)?
EPS is a key financial metric calculated by dividing a company's net income (minus preferred dividends) by the number of outstanding shares. It indicates how much money each share of stock earns and is widely used to evaluate company profitability.
What is the difference between basic and diluted EPS?
Basic EPS uses only outstanding common shares, while diluted EPS includes all potential shares from stock options, convertible bonds, and warrants. Diluted EPS is always equal to or lower than basic EPS and provides a more conservative view of per-share earnings.
Why are preferred dividends subtracted?
Preferred dividends are subtracted because EPS measures earnings available to common shareholders. Preferred shareholders receive their dividends before common shareholders, so their portion must be excluded to accurately reflect common stock earnings.