# Earnings Per Share Calculator

As the name implies, our online earnings-per-share calculator is used to determine the value of each share you have invested in the stock market.

**EPS **(Earnings per Share) is the **value of net profit** earned by **stockholders from each share invested in stocks**. In addition to this, EPS is counted as one of the essential factors applied to calculate the profit ratio of investing or buying a particular stock market share.

**Table of Contents**

## Formula of Earnings Per Share Calculator

You can calculate EPS using the simple formula list below, or you can use our earnings per share calculator for this purpose.

EPS = net income - dividends on prefferred stock / average outstanding common shares

**Whereas,**

**Net income:** This is the total profit a company earns after paying all expenses.

**Dividends on preferred stock:** In simple words, Dividends on preferred stock are the shareholder's payments they earn monthly or quarterly.

**Average outstanding common shares:** the current number of shares that stockholders possess. The number of shares may vary over time.

**Note:**

To calculate the cost per mile, you can use our CPM Calculator.

### Example

For a more precise understanding, let's have an example below;

Suppose a company has generated a net income of $3.12 billion this year. Whereas the total sum of dividends on preferred stock was $200 million and the outstanding common shares were $333.4 million, now calculate the earnings per share using the formula listed above.

**Given data**

Net income = $3.12 billion = $3,120,000,000

Dividends on preferred stock = $200 million= $200,000,000

Average outstanding common shares = $333.4 million = $333,400,000,

**To Find**

Earnings per share = ?

**Solution**

EPS = (net income – dividends on preferred stock) / average outstanding common shares

Putting values in the above equation

EPS = $3,120,000,000 - $200,000,000 / $333,400,000

Earnings per share of the company are $8.76

### How to use the Earnings Per Share Calculator?

The steps to use the earnings per share calculator are as follows:

**Step 1: **Enter the value of net income in the first required input.

**Step 2: **Enter the value of dividends in the second required input.

**Step 3: **Enter the value of common shares in the third required input.

**Step 4: **The calculator will automatically display an answer on the screen.

### Calculator use

To instantly find the EPS ratio of stocks where you're going to invest, you can use our free and online earnings per share calculator. Just enter the asked values, and the resultant answer will appear on the screen in seconds.