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Earnings per Share (EPS) Calculator

Calculate a company's Earnings Per Share (EPS) to evaluate corporate profitability.

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Calculation Parameters

Specify your inputs below.

Calculated Result

Available Income for Stockholders $70,000.00
Earnings per Share (EPS) $2.80
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Expert Tip

EPS is a key valuation metrics, directly influencing price-to-earnings (P/E) ratios and stock pricing models.

How this Calculator Works

This calculator computes Earnings Per Share (EPS), which measures the portion of a company's net profit allocated to each outstanding share of stock. It is a critical indicator of corporate health and the foundation of P/E valuation ratios. Equity investors use it to rate earnings strength.

Formula & Methodology

EPS = (Net Income - Preferred Dividends) / Average Outstanding Shares - Net Income is the company's total net profit after taxes. - Preferred Dividends are dividends promised to preferred shareholders. - Average Outstanding Shares is the weighted average number of common shares during the period.

Step-by-Step Calculation Example

Here is a step-by-step example showing how the calculations are performed:

A company reports a net income of $1,050,000, preferred dividends of $50,000, and has 500,000 outstanding shares. 1. Calculate net income available to common stockholders: $1,050,000 - $50,000 = $1,000,000. 2. Divide by outstanding shares: $1,000,000 / 500,000 = $2.00. Result: The Earnings Per Share (EPS) of the company is $2.00 per share.

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Earnings per Share (EPS) Growth Calculator

Calculate the compound annual growth rate of earnings per share (EPS) over multiple years.

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Economic Value Added (EVA) Calculator

Compute Economic Value Added (EVA) to measure true economic profit after deducting financing cost rates.

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Detailed Insights & Expert Guide

ℹ️ About this Calculation

This equity research and valuation calculator evaluates corporate fundamentals, stock price multiples, cost of capital, dividend discount models, and shareholder return metrics based on SEC financial reporting and Wall Street equity analysis standards.

Variable Glossary

Input

Equity Inputs

Share price, earnings per share (EPS), dividend amount, book value, debt/equity ratio, or systematic beta coefficient.

Parameter

Valuation Output

Price-to-Earnings (P/E), EV/EBITDA multiple, Intrinsic Value ($), WACC %, or Return on Equity (ROE %).

How to Calculate Step-by-Step

1

Step 1

Input current stock price, shares outstanding, or balance sheet / income statement numbers.

2

Step 2

Enter expected growth rate, cost of equity, or market risk premium assumptions.

3

Step 3

Review calculated valuation multiples, margin of safety comparison, or required rate of return.

FAQ

What is WACC and why is it crucial for equity valuation?
Weighted Average Cost of Capital (WACC) represents a company's required average return on debt and equity capital. It is used as the hurdle rate to discount future cash flows in DCF valuation models.
How does stock Beta measure systematic risk?
A stock beta of 1.0 means price volatility matches the broader market index. Beta > 1.0 indicates higher volatility, while Beta < 1.0 reflects lower systematic volatility.
Should valuation multiples be evaluated in isolation?
No. Valuation ratios (P/E, EV/EBITDA, P/B) should always be benchmarked against industry peer groups, historical trading averages, and expected earnings growth (PEG ratio).