How to calculate earnings per share?

The Earnings Per Share, abbreviated EPS and in English Earnings per Share (EPS), indicates how much earnings per share a company has made in a given period .

The most commonly used period is one year, but earnings per share are often also calculated per quarter. The earnings per share provides an indication of how much dividend can be paid out per share and how much is left to grow the organization.

In this article I briefly discuss the earnings per share and how to use it when valuing shares.

  • Calculate earnings per share
  • Example earnings per share
  • Outstanding and diluted earnings per share
  • Use EPS & Disadvantages of EPS

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