EARNINGS PER SHARE CALCULATOR
Earnings per share calculator help you to calculate the EPS ratio. Enter the amounts of net income, dividends on preference shares, and the number of shares and get instant results.
This earnings per share calculator is an easy way out to save yourself from the mess of calculating earnings per share manually. This EPS calculator provides you with accurate results without letting you go through any intricate procedure. For using this tool, you just have to follow the simple steps mentioned below.
- Enter the relevant amounts in the boxes provided accurately.
- After entering the values, click on the “Calculate EPS” button.
- As you will click this button, the tool will commence the calculation process and display the results in a matter of seconds.
Earnings per share calculator is an advanced tool developed for calculating the proportion of a company’s profit, which is allocated to each issued share held by the shareholders. The basic aim of developing this tool is to make it easier for people to calculate earnings per share ratio of multiple companies before deciding on purchasing shares.
Before the inception of this tool, EPS calculation was a strenuous task as it involves the usage of a formula. It’s not easy for everyone to memorize the formula; therefore, the Earnings per share calculator is the easy way out from this nuisance. Also, you don’t have to get registered for accessing the Earnings per share calculator on Searchenginereports.net. By just entering the relevant values in the given boxes, you will be able to calculate EPS ratio in a couple of seconds.
Our earnings per share calculator provide top-grade features that make EPS calculation effortless for each individual. There are the following features of our tool:
You can get the earnings per share ratio in the blink of an eye by just putting values of total net income, preferred dividends, and the number of common stocks.
This advanced tool calculate earnings per share in multiple currencies such as Dollar ($), Pound Sterling (£), Euro(€), and Yen(¥).
This earnings per share calculator is a free web-based tool and you don’t have to go through the hassle of registration to get EPS ratios.
You can do unlimited EPS calculations to estimate shareholders’ value in profit. This tool will never restrict you from calculating earnings per share ratios.
Supporting all Devices:
The algorithm of the EPS calculator is compatible with all devices such as iOS, Android, Windows, Mac, or Linux operating systems. Use this tool anytime or anywhere.
Earnings per share is a financial ratio used for measuring the profitability of a company. EPS is a widely used metric by investors for estimating the value of any company. Basically, the earnings per share ratio lets the investors know the amount of money a company is making for each share in its stock after calculating the gross profit of a company. A higher EPS builds the confidence of investors in a company’s ability to generate profit, and they will be willing to pay more to get the shares.
Basic Earnings Per Share
Basic earnings per share is a rough measurement of a company’s profit allocated to each of its outstanding shares. It defines a company’s financial health to estimate its ability to offer a return against each issued share. Businesses with simple capital structures need to only calculate basic EPS for revealing their profitability.
Diluted Earnings Per Share
A company calculates diluted earnings per share if all of its convertible securities are converted. The dilutive securities are the ones that can be converted to common stock. The diluted EPS are always less than basic earnings per share as all securities are converted to common stock for its calculation.
The earnings per share can be calculated with the following formula.
The basic things involved in earnings per share calculation are net income, preferred stock dividend, and the average number of outstanding common shares. Let’s discuss each of them individually.Net Income
The net income refers to a company’s profit after the deduction of all expenses, loan interest, debenture interest, and taxes.Preferred Stock Dividend
This is the dividend amount paid to the preference shareholders.
Average Outstanding Common Shares
The total number of common shares issued by a company from its common stock is the average outstanding common shares.
Earnings Per Share Example
Let’s discuss an example to fully understand the usage of the basic EPS formula to calculate EPS ratio.
Net income = $800,000
Preferred Stock Dividend = $120,000
Average Outstanding Common Shares = 20000
Then put values in the EPS formula mentioned above,
EPS = $34
This is an advanced tool that market participants commonly used to calculate earnings per share and measures the company’s profitability before purchasing its shares.
Investors / Traders
An investor always looking forward to a profitable organization that returns him a high EPS ratio. Through this company owners or traders gain a competitive advantage over the other players in the market.
Although shareholders are the external entities of the company, they still have an influence on the company’s goodwill. With the basic knowledge, they can do an EPS calculation or determine its future growth before facing any loss.
Agents in Share Market
Agents in the share market are providing middle man services to calculate earnings per share ratio and compare it with the price of the stock by analyzing the growth level of shares. They got a handsome amount of commission if they make a profitable decision.