The EPS formula looks like this: EPS = (Net Income - Preferred Dividends) / Common Shares Outstanding For a simple example of calculating EPS, let's say XYZ Company has net income during the year ...

(For related reading, see "5 Types of Earnings Per Share.") Rate of Return (RoR): Meaning, Formula, and Examples Internal Rate of Return (IRR): Formula and Examples ...

For example, if a company has an annual EPS ... is divided by "E," or annual earnings per share.) The earnings-per-share formula has three inputs. You will need to know a company's net income ...

In the example below for Apple (Nasdaq: AAPL), the diluted earnings per share is not much different in price from the basic figure. Apple’s calculation for diluted earnings shows a slightly ...

For example, say the total number of shares that ... Analysts use variations of the basic EPS formula to avoid the most common ways that EPS may be inflated. Imagine a company that owns two ...

The formula for diluted earnings per share is a company's net income (excluding ... could result in additional shares being issued. For example, if a company issues stock options to its employees ...

Earnings per share is the quotient of a company's net income divided by the number of shares of stock it has outstanding. In other words, EPS is a company's profit expressed on a per-share basis.

Of course, you cannot tell if a specific amount of earnings per share is good if you don’t take the original stock price into consideration. After all, you need to purchase these shares in order ...

EPS represents profitability per share by dividing net income minus preferred dividends by shares outstanding. Consider EPS limitations such as incompleteness in conveying actual cash flow and ...

Earnings per share is one of the most important investing metrics. Here’s how to use EPS to analyze stocks. Many, or all, of the products featured on this page are from our advertising partners ...