EPS Calculator
Calculate earnings per share (EPS) from a company's net income and shares outstanding. Optionally subtract preferred dividends and enter a share price to see the P/E ratio. EPS is a fundamental metric used to evaluate a company's profitability on a per-share basis.
Educational purposes only.
This calculator provides estimates for educational purposes. EPS values should be compared within the same industry and alongside other financial metrics. This is not financial advice.
Educational purposes only. These calculators illustrate concepts and do not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.How It Works
Enter net income
The company's total profit after all expenses, found on the income statement.
Enter shares outstanding
Total number of shares held by all shareholders, found on the balance sheet or financial data sites.
Add optional fields
Preferred dividends (subtracted from net income) and share price (to calculate P/E ratio).
Review your results
See basic EPS, optional P/E ratio, and a plain-language explanation of the numbers.
Frequently Asked Questions
Earnings per share (EPS) is a financial metric that shows how much profit a company earns for each outstanding share of common stock. It is calculated by dividing net income (minus preferred dividends) by the total number of shares outstanding. EPS is one of the most widely used indicators for evaluating a company's profitability.
Basic EPS uses only the current number of shares outstanding. Diluted EPS accounts for all potential shares that could be created from stock options, convertible bonds, warrants, and other dilutive securities. Diluted EPS is always equal to or lower than basic EPS because it assumes more shares in the denominator. This calculator computes basic EPS.
There is no universal "good" EPS because it varies widely by industry, company size, and growth stage. A meaningful way to evaluate EPS is to compare it to previous quarters (is it growing?), competitors in the same industry, and analyst expectations. Consistent EPS growth over time is generally viewed as a positive sign of financial health.
Yes. A negative EPS means the company reported a net loss for the period. This is common for startups, companies in turnaround situations, or businesses investing heavily in growth. A negative EPS does not necessarily mean the company is failing, but it does indicate that the company spent more than it earned during that period.
Revenue (or sales) is the total money a company brings in before any expenses. EPS reflects the bottom line — what remains after subtracting all costs, taxes, interest, and preferred dividends, divided by shares outstanding. A company can have high revenue but low or negative EPS if its expenses are high. EPS measures profitability per share, while revenue measures total sales volume.