EPS Calculator
Calculate the earnings per share (EPS) based on a company's net income and outstanding shares. Ideal for assessing per-share profitability.
※ Use if necessary
EPS Calculator
Determine the earnings per share (EPS) by entering the company's net income and total outstanding shares.
These results are for reference only and were developed for educational and testing purposes. You can also directly access and review the source code, including the logic and free APIs used on this page.
Calculation Results
EPS Calculator Guide
The EPS Calculator is a tool designed to compute a company's earnings per share (EPS) based on its net income and total outstanding shares. This guide provides instructions on using the calculator and objective information about EPS and related financial concepts.
How to Use the EPS Calculator
Follow these steps to calculate earnings per share:
- Enter the Net Income: Input the company's total net income in dollars.
- Enter the Shares Outstanding: Input the total number of outstanding shares.
- Calculate: Click "Calculate EPS" to view the results.
Understanding EPS
Earnings Per Share (EPS) is a financial metric that indicates the profitability of a company on a per-share basis. It is widely used by investors and analysts to assess a company's financial performance.
Basic EPS
This is calculated by dividing net income by the total number of outstanding shares.
- Formula: EPS = Net Income / Shares Outstanding
- Excludes effects of dilutive securities
- Commonly reported in financial statements
Diluted EPS
This accounts for potential dilution from convertible securities, such as stock options or convertible bonds.
- Formula: Diluted EPS = (Net Income - Preferred Dividends) / (Shares Outstanding + Dilutive Shares)
- Provides a more conservative profitability measure
- Not calculated by this tool
Factors Affecting EPS
Several factors influence the EPS value:
Net Income
The total profit after expenses, taxes, and interest.
- Higher net income increases EPS
- Derived from a company's income statement
Shares Outstanding
The total number of shares issued and held by shareholders.
- Higher share count decreases EPS
- Reported in a company's balance sheet
Share Buybacks or Issuance
Changes in the number of shares affect EPS.
- Buybacks reduce shares outstanding, increasing EPS
- New share issuance increases shares outstanding, decreasing EPS
Typical EPS Values
EPS varies widely by industry and company size. Examples include:
Large Corporations
- Tech giants: $5-$15 per share
- Manufacturing firms: $1-$5 per share
Small Companies
- May range from $0.10-$2 per share
- Negative EPS possible if net income is a loss
Final Tips for Using the Calculator
- Use accurate net income and shares outstanding data from financial reports.
- Note that this calculator provides basic EPS only.
- Consult a company's annual report or financial statements for precise figures.
- For investment decisions, consider additional metrics like P/E ratio.
Results are estimates and may not reflect adjustments for dilutive securities or preferred dividends.