Financial Terms / earnings per share

What is EPS?

EPS is the measure of a company's profitability, calculated by taking the net profit and dividing it by the number of outstanding shares.

Formula

EPS = Net Income Available to Common Shareholders / Average Outstanding Shares

How do I calculate the earnings per share?

It is important to understand how to calculate Earnings per Share (EPS) in order to get a better understanding of a company's ability to produce net profits for shareholders. The EPS formula is used to measure the company's earnings per share and is calculated by dividing the net income available to common shareholders by the average outstanding shares over a certain period of time. To calculate the EPS formula, you can use a spreadsheet program such as Sourcetable. The formula for calculating the EPS is as follows:

EPS = Net Income Available to Common Shareholders / Average Outstanding Shares

What is Earnings per Share (EPS)?

Earnings per Share (EPS) is a company's net profit divided by the number of shares outstanding. It is used to measure the profitability of a company.

What is the purpose of Earnings per Share (EPS)?

The purpose of Earnings per Share (EPS) is to measure a company's profitability. It is a measure of how profitable a company is relative to the number of shares outstanding.

How can EPS be used to compare companies?

EPS can be used to compare companies in the same industry. It can be used to compare the relative profitability of companies and determine which is the most efficient and successful. It is also useful for investors to compare companies and decide which stocks to invest in.

Key Points

How do I calculate earnings per share?
EPS = Net Income Available to Common Shareholders / Average Outstanding Shares
EPS Measures a Company's Profitability
Earnings per share (EPS) is a measure of a company's profitability that is calculated by taking its net income and dividing it by the number of outstanding stock shares. It is used to evaluate a company's share price and market cap.
EPS is Determined by Net Income and Outstanding Stock Shares
EPS is a measure of a company's profitability that is calculated by taking its net income and dividing it by the number of outstanding stock shares. This calculation helps investors to gauge how profitable a company is.
EPS Evaluates a Company's Share Price and Market Cap
EPS is used to evaluate a company's share price and market cap. This helps investors to better understand the value of a company's stock, and whether or not it is a good investment.

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