What is the EPs formula?

The EPS formula indicates a company’s ability to produce net profits for common shareholders. This guide breaks down the Earnings per Share formula in detail. A single EPS value for one company is somewhat arbitrary.

How is earnings per share (EPS) calculated?

Earnings per share (EPS) is calculated by determining a company's net profit and allocating that to each outstanding share of common stock Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock.

What does EPs stand for?

EPS (for a company with preferred and common stock) = (net income - preferred dividends) ÷ average outstanding common shares EPS is sometimes known as the bottom line — the final statement, both literally and figuratively, of a firm's worth.

What is diluted EPS?

Related Terms Diluted EPS is a performance metric used to assess a company's earnings per share (EPS) if all convertible securities were realized. Basic earnings per share (EPS) tells investors how much of a firm's net income was allotted to each share of common stock.