EPS Calculator
Basic EPS
Calculate basic earnings per share
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Diluted EPS
Calculate diluted earnings per share
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EPS Growth
Calculate EPS growth rate between periods
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Formula
Basic EPS = (Net Income - Preferred Dividends) / Shares Outstanding | Diluted EPS = (Net Income - Pref Div) / (Shares + Dilutive Shares)
Frequently Asked Questions
What is EPS?
Earnings Per Share (EPS) measures the portion of a company's profit allocated to each outstanding share of common stock. It is calculated as (Net Income - Preferred Dividends) / Weighted Average Shares Outstanding.
What is the difference between basic and diluted EPS?
Basic EPS uses the current number of shares outstanding, while diluted EPS accounts for all potentially dilutive securities like stock options, warrants, and convertible bonds. Diluted EPS is always less than or equal to basic EPS.
Why is EPS important?
EPS is a key profitability metric used to compare companies and calculate the P/E ratio. Higher EPS generally indicates greater profitability, and EPS growth is closely watched by investors.