Earnings Per Share Calculator
Calculate EPS to measure company profitability per share
EPS Formulas
Understanding Earnings Per Share
Earnings Per Share (EPS) divides a company's profit by its outstanding shares, showing how much money the company made for each share. It's a fundamental metric for comparing profitability across companies regardless of size.
Higher EPS indicates greater profitability per share. However, EPS alone doesn't tell the full story—compare it to stock price (P/E ratio), historical EPS, and peer companies for meaningful analysis.
There are two types: Basic EPS uses actual shares outstanding, while Diluted EPS includes all potential shares from options, convertible bonds, and warrants. Diluted EPS is more conservative and often used by analysts.
Types of EPS
Basic EPS
Uses current shares outstanding. Simpler calculation, higher number.
Diluted EPS
Includes all potential shares. More conservative, preferred by analysts.
Trailing EPS (TTM)
Last 12 months actual earnings. Historical, definite.
Forward EPS
Analyst estimates for future periods. Predictive, uncertain.
EPS Benchmarks by Sector
| Sector | Typical EPS Range | Growth Expectation | Notes |
|---|---|---|---|
| Technology | $2-10 | 15-25% growth | Wide variance |
| Financials | $3-8 | 5-15% growth | Cyclical |
| Healthcare | $4-15 | 10-20% growth | Pipeline dependent |
| Consumer | $2-6 | 5-10% growth | Stable |
| Utilities | $2-5 | 3-6% growth | Low volatility |
EPS Analysis Tips
Track Growth Rate
Consistent EPS growth over 5-10 years is more important than a single high number.
Look at Quality
Buybacks inflate EPS artificially. Check if growth is from actual profit increase or share reduction.
Compare Within Industry
A $5 EPS for a utility is different than for a tech stock. Compare to sector peers.
Check for One-Time Items
Asset sales, tax benefits, or charges distort EPS. Look at adjusted or operating EPS.
Frequently Asked Questions
What is a good EPS?
EPS alone isn't 'good' or 'bad'—it depends on stock price, industry, and growth. A $2 EPS is great for a $20 stock (P/E of 10) but poor for a $200 stock (P/E of 100). Focus on EPS growth and P/E ratio.
Why use diluted EPS?
Diluted EPS accounts for all potential shares from options, warrants, and convertible securities. It shows the worst-case scenario if all securities converted to stock, giving a more conservative profitability view.
Can EPS be negative?
Yes, when a company has a net loss. Negative EPS means each share represents a loss. Startups and turnarounds often have negative EPS. It makes P/E ratio meaningless (negative P/E isn't used).
How do share buybacks affect EPS?
Buybacks reduce shares outstanding, increasing EPS even if net income stays flat. A company earning $100M with 10M shares has $10 EPS. After buying back 1M shares, EPS becomes $11.11 with same income.
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