Calculate Earnings Per Share

Calculate Earnings Per Share | Definition

Earnings per Share.

(1) Net income less preferred dividends, divided by shares of common stock outstanding.

(2) A company's profit divided by its number of shares. For example, if a company earned $2 million in one year and had 2 million shares of stock outstanding, its EPS would be $1 per share. Companies often use a weighted average of shares outstanding over the reporting term.

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