Earnings Per Share (EPS) Calculator

What is EPS?

Earnings per share (EPS) divides a company's net income — after subtracting any preferred dividends — by the weighted-average number of diluted shares outstanding, expressing profitability on a per-share basis. Diluted EPS is the most conservative form because it accounts for all potential shares from stock options, warrants, and convertible securities. Because the level of EPS depends on how many shares a company has, it is not comparable across companies: investors read it by its trend, how fast EPS grows from year to year for the same company. Buybacks lift EPS by shrinking the share count, so EPS can grow faster than net income. EPS is also the denominator in the widely used price-to-earnings (P/E) ratio.