Given here is the EPS calculation formula to find out the earning per share. Finding the earning per share will give you an insight in calculating the price-to-earnings ratio. Calculating Earnings per share is simply by subtracting the dividends on preferred stock from the net income and dividing the result by average outstanding shares. The Earnings per share formula is stated as e=n/s where, e = Earning Per Share(EPS), n = Net income and s is the Outstanding Share.

Where,

e = Earning Per Share(EPS)

n = Net Income

s = Outstanding Share

p = Preferred Dividends

There are many different numbers that investors look at when deciding whether to invest in a company or not. One among that is earnings per share. Use our online price to earnings ratio calculator to find the EPS. Earnings per share formula helps to find the profitability of the company.