Earnings per Share Calculator

Updated: May 28, 2018

Earnings per Share Calculator is used to calculate the earnings per share (abbreviated as EPS)

Earnings Per Share:

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Background Information

What does Earnings per share or EPS mean?: Earnings per share (EPS) are the portion of a company's profit allotted to each outstanding share of the common stock.

Importance of Earnings per share or EPS: EPS is an important financial measure, the one which serves as an indicator of a company's profitability. It can be easily calculated by dividing the company's net income by its total number of outstanding shares.

Formula: Earnings Per Share = Net Earnings / Outstanding Shares

Example: Suppose the company's net earnings for the previous year was $10,000 and the number of shares outstanding is 1000, which equals an EPS of 10, then according to the formula ($10,000 / 1000 = 10).

Created: May 18, 2018

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