Earnings Per Share Calculator

What is (EPS) Earnings Per Share

Earnings per share or EPS is a widely used metric for the calculation of a company’s profitability. In easy words, EPS is an estimation of a company’s value in the market as it defines how much of its profit belongs to each share issued from its total shares stock. On the other hand, anyone can manually calculate earnings per share. However, we have developed earnings per share calculator for those who do not want to manually calculate EPS. The two primary forms of EPS are basic earnings per share and diluted earnings per share. Let’s discuss them in detail.

Basic Earnings Per Share:

This type of EPS is calculated by businesses that have simple capital structures. This is the estimation of a company’s profitability division to each of its issued shares after the deduction of all kinds of taxes and preference share dividends.

Diluted Earnings Per Share:

Businesses with complex capital structures have to calculate diluted earnings per share. In this form of EPS, all of a company’s securities are first converted to common stock for the fair valuation of how much of its profit is divided among the shareholders. A company’s ability to convert securities to common stock decides whether it can calculate diluted earnings per share or not.

How To Calculate EPS With Our Online Earnings per share calculator?

The earnings per share calculator on DupliChecker.com is an easy to use tool that comes with a user-friendly interface. The tool doesn’t involve any complex processes, such as getting registered as it’s not a limitation for accessing our earnings per share calculator. This super-fast EPS calculation utility is compatible with all kinds of devices, and you just have to follow the simple steps given below for using it.

• Firstly, enter the net income of a company and its preference share dividends in the given boxes.
• Next is to enter the total number of outstanding shares.
• Lastly, click on the “Calculate EPS” button!
• The results will be generated in a matter of seconds and displayed on your screen.

How to Calculate (EPS) Earnings Per Share Manually?

The manual calculation of the earnings per share ratio isn’t much difficult because it is all based on the implementation of a formula. However, memorizing the formula and accurately solving the values make our earning per share calculator a much better option in comparison. Let’s look into the elements involved in EPS calculation.

Net Income:

A company’s net income is the amount calculated after the deduction of all kinds of taxes, expenses, and interest from its revenue.

Preferred Dividends:

Preferred dividends or the dividend on preferred shares is the amount paid to the people who have purchased a company’s preferred shares.

Shares Outstanding:

The total number of shares issued by a company from its shares’ common stock is called shares outstanding.

Earnings Per Share Formula

EPS = Net Income-Preferred DividendsShares Outstanding

For instance, if a company’s net income is $200,000, preference share dividends are $35,000, and shares outstanding are 45000, then its EPS can be calculated as follows:

EPS = 200,000 – 35000/ 45000

EPS = $3.67

Types of Earnings Per Share (EPS)

The three main types of earnings per share discussed below.

Trailing EPS

The term trailing refers to the previous years, but trailing EPS is used to assess a company’s earnings per share based on its last four quarters’ earnings. The trailing EPS provides the old and accurate figures as it is based on realistic data and performance of a business. However, investors usually want results from the current period. The earnings per share calculator are the best solution for them.

Current EPS

The current EPS is calculated by businesses to portray the performance of a business or its ability to pay back shareholders by using the current statistics. All of the data used in the current EPS calculation is based on the net income, preference dividends, and outstanding shares in the current year.

Forward EPS

This type of EPS is used by investors who are looking forward to getting an idea of how much a company will be earning for each of its issued shares. This estimated figure is used for P/E ratio calculation by investors to find out whether the current share price is overvalued or undervalued.

Uses of Earnings Per Share Calculator

The earnings per share ratio is a useful tool for many reasons. The top uses of the earnings per share calculator are discussed below.

Market Analytics:

Stock trading is confused with the game of luck, but it’s surely not a bluff, and stock traders work hard to nail down the companies in which they should invest. Therefore, depending upon market analytics the earnings per share calculator calculates the EPS ratio of several companies to analyze which option is better for the investment in the stock market.

Assistance for Investors:

The investors only crave profits, and they cannot make blindfolded investment decisions. Hence, they take EPS as a crucial aspect while exploring investment options. The earnings per share calculator help them assess how much a company is able to make for each of its outstanding shares.