MathLive

Earnings per share

Gives the portion of a company's profit attributable to each outstanding common share. It is used to compare profitability across companies and periods, and is a core figure in equity analysis.

\mathrm{EPS}=\frac{\text{Net income}-\text{Preferred dividends}}{\text{Weighted average number of common shares outstanding}}

What the symbols mean

Basic earnings per share, in currency per share
Profit for the period after taxes and all expenses, in currency
Dividends declared on preferred stock during the period, in currency
Average count of common shares outstanding over the period, weighted by time outstanding

About this formula

  • FieldEconomics and finance
  • TopicFinancial ratios
  • LevelUniversity
  • Also calledEPS, earnings per share formula, net income per share, basic EPS, profit per share, EPS calculation

Write it in Obsidian

MathLive is a free visual math editor for Obsidian. Run Find a formula, type “earnings per share”, and it goes into your note as editable LaTeX. You can also scan formulas from screenshots, PDFs and handwriting.

Get MathLive for ObsidianSee how it works

Related formulas