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Earnings per Share (EPS) Calculator

Determine a company\'s profitability on a per-share basis. EPS is a fundamental metric used in calculating the P/E ratio and assessing a company\'s financial health.

Company Financials

Enter the company's net income and shares outstanding to calculate EPS

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Complete Guide to Earnings per Share

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Frequently Asked Questions

Common questions about Earnings per Share analysis and profitability

What is Earnings per Share (EPS)?

EPS is a financial metric that shows how much profit a company generates for each share of its stock. It's calculated by dividing net income by the number of outstanding shares.

How do I calculate EPS?

EPS = Net Income ÷ Shares Outstanding. For example, if a company has $1 million in net income and 500,000 shares outstanding, the EPS is $2.00.

What's a good EPS?

A "good" EPS depends on the industry and company size. Generally, higher EPS is better, but it should be evaluated relative to the company's historical performance and industry peers.

What's the difference between basic and diluted EPS?

Basic EPS uses only outstanding shares, while diluted EPS includes potential shares from stock options, convertible securities, and other instruments that could increase share count.

How does EPS growth affect stock price?

Consistent EPS growth typically leads to higher stock prices as it indicates improving profitability. Investors often pay premiums for companies with strong EPS growth rates.

Can EPS be negative?

Yes, EPS can be negative when a company has net losses. Negative EPS indicates the company is losing money and may signal financial difficulties or temporary challenges.

How do stock buybacks affect EPS?

Stock buybacks reduce the number of outstanding shares, which increases EPS (assuming net income stays the same). This can make a company appear more profitable per share.

What are the limitations of EPS?

EPS can be manipulated through accounting practices, doesn't account for debt levels, and can be affected by one-time events. It should be used alongside other financial metrics.

How do I compare EPS across companies?

Compare EPS within the same industry and similar business models. Consider company size, growth stage, and business model differences when making comparisons.

What's the difference between trailing and forward EPS?

Trailing EPS uses historical earnings (past 12 months), while forward EPS uses projected earnings. Trailing EPS shows actual performance, while forward EPS reflects growth expectations.

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Earnings per Share (EPS) Calculator

Determine a company\'s profitability on a per-share basis. EPS is a fundamental metric used in calculating the P/E ratio and assessing a company\'s financial health.

How to use Earnings per Share (EPS) Calculator

Step-by-step guide to using the Earnings per Share (EPS) Calculator:

  1. Enter your values. Input the required values in the calculator form
  2. Calculate. The calculator will automatically compute and display your results
  3. Review results. Review the calculated results and any additional information provided

Frequently asked questions

How do I use the Earnings per Share (EPS) Calculator?

Simply enter your values in the input fields and the calculator will automatically compute the results. The Earnings per Share (EPS) Calculator is designed to be user-friendly and provide instant calculations.

Is the Earnings per Share (EPS) Calculator free to use?

Yes, the Earnings per Share (EPS) Calculator is completely free to use. No registration or payment is required.

Can I use this calculator on mobile devices?

Yes, the Earnings per Share (EPS) Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.

Are the results from Earnings per Share (EPS) Calculator accurate?

Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.