Basic EPS
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Diluted EPS
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Dilution Impact
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When Should You Use This?
Use this calculator to compute earnings per share before comparing P/E ratios. EPS is the foundation of most equity valuation methods and is reported quarterly by all public companies.
How It Works
1
Enter Net Income
Find net income on the income statement. Subtract preferred dividends if the company has preferred stock.
2
Enter Share Counts
Basic shares exclude options/warrants. Diluted shares include all potentially convertible securities.
3
Compare EPS
Higher EPS is better. Compare to prior quarters and analyst estimates. A large basic vs diluted gap means heavy dilution.
Frequently Asked Questions
Earnings Per Share (EPS) is a company's net profit divided by its outstanding shares. It tells you how much profit each share earned.
Basic EPS uses actual shares outstanding. Diluted EPS includes all potential shares from options, warrants, and convertible securities. Diluted is the more conservative measure.
EPS alone doesn't tell you much — a $1 EPS stock at $10 is very different from $1 EPS at $100. Use P/E ratio (price/EPS) for comparison.
EPS drives stock prices. When companies beat EPS estimates, stocks typically rise. When they miss, stocks fall. It's the most-watched metric in earnings season.
Yes. Negative EPS means the company lost money. Many growth companies have negative EPS while investing heavily in expansion.