How do you calculate earnings per share?

To calculate earnings per share, take a company's net income and subtract preferred dividends. Then divide that amount by the average number of outstanding common shares. Where Do I Find the Net Income Figure for the EPS Calculation? You'll find this figure at the bottom of a company's income statement.

How do you calculate earnings per share (EPS)?

It's calculated by dividing the company's net income by the total number of outstanding shares. The higher a company's EPS, the more profitable it is considered to be. Earnings per share (EPS) is a company's net income subtracted by preferred dividends and then divided by the number of common shares it has outstanding.

What is earnings per share (EPS)?

Earnings per share is the portion of a company's income available to shareholders and allocated to each outstanding share of common stock. EPS equals the difference between net income and preferred dividends, divided by the average number of outstanding common shares. EPS is sometimes known as the bottom line of a firm's worth.