Calculate both Basic and Diluted EPS with this comprehensive tool
Earnings Per Share (EPS) is a financial metric that indicates how much profit a company makes for each share of its stock. It's calculated by dividing the company's net income (minus preferred dividends) by the number of outstanding common shares.
EPS is a key indicator of a company's profitability and is widely used by investors to evaluate a company's financial health and compare it with other companies.
Basic EPS is calculated using the actual number of shares outstanding during the period.
Diluted EPS takes into account all potential shares that could be created through convertible securities, options, and warrants. It shows what EPS would be if all dilutive securities were exercised.
Diluted EPS is generally equal to or lower than Basic EPS, as it accounts for the potential increase in shares outstanding.
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