Earnings per Share

Earnings per share, abbreviated as EPS, is how much money a company makes for each shares.

 

Earnings per Share Formula

\(\large{ EPS = \frac{ NI \;-\; PD }{ SO }  }\)

Where:

\(\large{ EPS }\) = earnings per share

\(\large{ SO }\) = average shares outstanding of the company

\(\large{ PD }\) = preferred dividend (dividend to preferred shareholders)

\(\large{ NI }\) = net income