Earnings per share (EPS) indicates the profit attributable to each outstanding share of common stock. EPS is calculated using the following formula:
$$\text{EPS} \mmlToken{mo}[linebreak="auto"]{=} \frac{\text{Net income} - \text{Preferred dividends}}{\text{Weighted average number of common shares outstanding}}$$
Earnings Per Share FAQ
What is EPS?
It is the profit attributable to each outstanding common share.
How do you calculate EPS?
Subtract preferred dividends from net income and divide by weighted average common shares.
