Earnings per Share Formula |
| \( EPS \;=\; \dfrac{ NI - PD }{ SO } \) |
| Symbol |
| \(\large{ EPS }\) = earnings per share |
| \(\large{ NI }\) = net income |
| \(\large{ PD }\) = preferred dividend (dividend to preferred shareholders) |
| \(\large{ SO }\) = average shares outstanding of the company |
Earnings per share, abbreviated as EPS, is how much money a company makes for each shares.
