Earnings Per Share (EPS) Calculator: Analyze Company Profitability
Enter net income, add weighted-average shares, press calculate—your per-share profit appears instantly. EPS equals net income divided by share count; a $2 million firm with 2.5 million shares shows $0.80 EPS. S&P 500 companies reported a median $2.33 quarterly EPS in 2023 (S&P Global, 2023).
Earnings Per Share (EPS) Calculator
Earnings Per Share (EPS)
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How to use the tool
Enter net income—type a figure such as $2 300 000 or $15 450 000.
Enter weighted-average outstanding shares—type counts like 2 750 000 or 6 120 000.
Click “Calculate EPS”—the result appears below the form, rounded to two decimals.
Formula
$$ EPS = rac{\text{Net Income}}{\text{Weighted Average Outstanding Shares}} $$
Example calculations
Example A: Net Income =$2 300 000; Shares = 2 750 000 ⇒ EPS = $0.84.
Example B: Net Income =$15 450 000; Shares = 6 120 000 ⇒ EPS = $2.53.
Example C: Buyback effect—Net Income =$500 000 000; Shares fall from 120 000 000 to 100 000 000 ⇒ EPS rises from $4.17 to $5.00.
Quick-Facts
Both basic and diluted EPS must appear on U.S. GAAP statements (FASB ASC 260, 2022).
S&P 500 median quarterly EPS reached $2.33 in Q2 2023 (S&P Global Market Intelligence, 2023).
IFRS requires weighted-average shares to adjust for stock splits (IAS 33, 2021).
Dilution can lower EPS by 5-15 % in tech firms with many options (McKinsey Valuation Report, 2022).
FAQ
What is EPS?
EPS shows profit earned for each common share, a direct rac of net income to share count (SEC Investor Bulletin, 2023).
How are weighted-average shares computed?
Add each period’s shares, multiply by time held, rac by the year—“include stock issues and repurchases” (IAS 33, 2021).
When should I use diluted EPS?
Use diluted EPS when options, warrants, or convertibles could enlarge share count, giving investors a worst-case profit view (Investopedia, 2023).
Does EPS subtract preferred dividends?
Yes. Basic EPS uses net income after preferred dividends, protecting common-share accuracy (FASB ASC 260, 2022).
How do stock splits affect EPS?
EPS and share count adjust proportionally, leaving value per share unchanged (NYSE Market Data, 2022).
Can EPS be manipulated?
Firms can boost EPS by repurchasing shares or altering accounting estimates; analysts check cash flow to verify quality (CFRA Forensic Accounting Guide, 2023).
What is a “good” EPS?
Judge EPS against industry peers and historical trends; S&P utilities average $1.10 quarterly, tech averages $3.05 (S&P Global, 2023).
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