What is Earnings per Share (EPS)?
Earnings per Share Calculator: Earnings per Share (EPS) is a key financial metric that indicates a company’s profitability on a per-share basis. It is commonly used by investors to assess the financial health of a company and its potential for growth. The higher the EPS, the more profitable the company is considered to be.
EPS Calculator
How to Calculate Earnings per Share?
The formula to calculate Earnings per Share is:
EPS = (Net Income - Preferred Dividends) / Average Outstanding Shares
This simple calculation provides insight into how much profit each share of stock generates.
Why Use an EPS Calculator?
An EPS Calculator simplifies the process of calculating Earnings per Share, especially for investors who need to evaluate multiple companies quickly. With an EPS Calculator, you can:
- Save time on manual calculations
- Ensure accuracy in results
- Make informed investment decisions
Benefits of Knowing EPS
Understanding EPS helps investors:
- Compare the profitability of companies
- Evaluate stock valuation
- Identify growth potential
- Make smarter investment choices