# Earnings Per Share Calculator

Earnings per share (EPS) is defined as a part of company's profit which is allocated to outstanding share of common stock. It is also termed as net income per share. Earnings per share calculator will help you to calculate the price-to-earnings valuation ratio. The EPS calculation is necessary as it serves as an indicator of a company's profitability. Find EPS ratio by providing the net income, preferred dividends and outstanding share values in the below calculator.

## EPS Ratio | EPS Calculation

Earnings per share (EPS) is defined as a part of company's profit which is allocated to outstanding share of common stock. It is also termed as net income per share. Earnings per share calculator will help you to calculate the price-to-earnings valuation ratio. The EPS calculation is necessary as it serves as an indicator of a company's profitability. Find EPS ratio by providing the net income, preferred dividends and outstanding share values in the below calculator.

Code to add this calci to your website

#### Formula:

e = ( n - p ) / s
**Where,**
e = Earning Per Share(EPS)
n = Net Income
s = Outstanding Share
p = Preferred Dividends
### Example:

Find EPS ratio of a company whose net income is $2000000, preferred dividends is $50000 and has 5 outstanding shares?

#### Solution:

Earnings per share = (2000000 - 50000 ) / 5

= $390000