Earnings Per Share Calculator
The earnings per share calculator helps to measures the EPS ratio. To calculate enter the amounts of net income, dividends on preference shares, and the number of shares issued by the company.
What is (EPS) Earnings Per Share?
Earnings per share is a financial ratio used by businesses and investors to estimate a company’s value. EPS is basically a module that calculates the division of a company’s net profit to each of its shares from the issued stock. The earnings per share manual calculation is an intricate process that might land people on inaccurate results. For calculating earnings per share, you will have to memorize a formula that might not be easy, and the risk of getting mistaken outcomes would be high. Therefore, we have developed the earnings per share calculator utility to save people from the nuisance of manual calculations. You can get your hands on accurate results in a matter of instance, by using this EPS calculation online utility. There are two types of earnings per share, and they are discussed below.
Basic Earnings Per Share
The businesses with simple capital structures are only required to calculate basic earnings per share. The basic EPS helps the investors figure out a rough idea of how much a company’s capability is to offer a return against each issued share.
Diluted Earnings Per Share
Diluted earnings per share are usually calculated by businesses with complex capital structures. In the calculation of diluted earnings per share, a business has to convert all of its securities to common stock. If your company is able to convert securities into common stock, then you can calculate diluted earnings per share.
Earnings Per Share Formula
The eps formula for calculating earnings per share is as follows:
EPS = ((Net Income – Preferred Stock Dividend)) / (Average Number of Outstanding Common Shares)
Let’s discuss the essential factors of the earnings per share formula.
It’s the amount calculated after deduction of all expenses, taxes, and interests from the revenue of a business.
Dividends on Preferred Stock:
The amount paid to the preference shareholders as a return for their investment is known as the dividend on preferred stock.
Average Outstanding Common Shares:
It’s the number of shares issued by a company from its common stock.
How To Calculate EPS(Earnings Per Share)?
The earnings per share calculator on SmallSEOTools is an easy to use tool that doesn’t ask the users to learn the specific procedure for its usage. The user-friendly interface of our EPS calculator allows you to calculate earnings per share in a couple of clicks. For using this tool, you can follow the simple steps given below after accessing it.
- First of all, enter the amounts of net income, dividends on preference shares, and the number of shares issued by the company.
- After entering these values, just click on the Calculate EPS button.
- As a result, the EPS calculator will calculate and display results in a blink of an eye.
How Does This EPS Calculator Work?
The earnings per share calculator is a straightforward tool based on advanced algorithms. The EPS calculator works on the values entered by the user in the backend of the tool without asking the user to invest any manual efforts.
The users don’t have to worry about going through the hurdles for calculating earnings per share. Our tool doesn’t ask you to get registered on the website for using the EPS calculation service. You can use this EPS calculator as many times as you desire without signing up or creating an account on this website.
Top Features Of Our EPS Calculator
Our EPS calculator comes with top-notch features, which makes the process of calculating EPS a piece of cake for everyone. The top features of this earnings per share calculator are described below.
Free and Easy to Use:
You don’t need to pay a penny for using this online service. This easy to use tool provides quality service to all of its users without any charges.
Accurate Calculation: This advanced calculator provides you with accurate calculations every time you enter values on it. There’s no need to rely on estimated values anymore, as you can get your hands on exact values with our EPS calculator.
Fast and Secure:
Our earnings per share calculator is a super-fast tool that delivers results instantaneously. You don’t have to spend an ample amount of time in the manual calculation of earnings per share, as this fast and secure service is available 24/7.
Supports All Platforms:
You won’t face compatibility issues for using this EPS calculation service. Whether your device is running on iOS, Android, Windows, Mac, or Linux operating system, you can easily access this tool and calculate EPS at any time of the day.
Access from Anywhere:
This tool is available for people living all across the globe. It’s a web-based service that can be accessed from anywhere by merely connecting your device to the internet connection.
What Can You Do With The Earnings Per Share Calculator?
There are several advantages of using earnings per share calculator. You can use this online tool for multiple reasons. The EPS calculator can be utilized for the following purposes:
Calculate your Income:
With earnings per share, you can calculate the total profit you are making for the investment you have made. The total share stock you have of a company can be multiplied with EPS to find out the income you’re making with your investment.
EPS can be used as a performance measuring tool by the management to assess whether a company is doing a good or bad job. After calculating EPS of multiple years, it becomes easier for the managers to figure out how much they have improved over the years.
Earnings Vs. Dividends:
The amount of EPS belongs to the shareholders, and it has to be repaid to them sooner or later. As the profit is the earning of a company, the board of directors has to decide whether to reinvest some of its proportion or pay the full dividend to the shareholders.
Who Can Use This EPS Calculator?
The usage of the earnings per share calculator isn’t limited to a specific group of people. The top users of this EPS calculation service are described below.
The owners of the company use the EPS calculator to measure their financial health. It will help them make a decision on withdrawing their investment or investing more in the company.
Stock Traders & Investors:
The investors are always in the hunt for companies that offer them a higher return on investment. The EPS calculator helps investors in calculating the division of profits of each company to its shareholders.
EPS calculation is vital for consultors as they can provide their consultation service to the investors on making the right decision for investing in a profitable company by checking their earnings per share.