Fill in the details to see an instant example of our rates
Earnings Per Share (EPS)
Earnings Per Share (EPS) is a financial metric that measures the portion of a company’s profit allocated to each outstanding share of common stock. It is calculated by dividing the company’s net income (minus preferred dividends) by the average number of outstanding shares during a specific period.
EPS is a key indicator of a company’s profitability and is often used by investors to assess its financial health and performance.
EPS = (Net Income) − (Preferred Dividends​) / Weighted Average Outstanding Shares
- Net Income – The company’s total profit after all expenses, taxes, and costs have been deducted from revenue.
- Preferred Dividends – Dividends that must be paid to preferred shareholders before common shareholders receive any earnings (applicable only if the company has preferred shares).
- Weighted Average Outstanding Shares – The average number of common shares outstanding during the reporting period, adjusted for any stock splits or share buybacks.
