Earnings Per Share (EPS) Calculator

Basic EPS uses current shares outstanding. Diluted assumes all stock options, warrants, and convertibles are exercised. Diluted is the more conservative number and the one used in most P/E calculations.

Non-GAAP (adjusted) EPS excludes items management considers non-recurring: stock-based compensation, restructuring, amortization. For tech companies, the gap can be huge; sometimes non-GAAP earnings are double GAAP. Track both.

Mature S&P 500 companies grow EPS roughly 6-8% annualized long-term. Growth stocks may target 15-25%+. Sustainable EPS growth from buybacks alone (without revenue growth) is often a yellow flag.

Buybacks reduce share count, mechanically boosting EPS even if net income is flat. A company shrinking shares 4% annually adds 4% to EPS growth without operational improvement. Look at net income trend separately.

Earnings per share (EPS) measures the net profit attributable to each share of common stock. It is the foundation of the price-to-earnings (P/E) ratio and one of the most widely used metrics for comparing profitability across companies.

Almost always. Diluted EPS better reflects economic reality because it accounts for the effect of stock-based compensation. Analysts and standard valuation metrics treat diluted EPS as the benchmark.

Preferred shareholders are entitled to their dividends ahead of common shareholders. Since EPS is concerned only with the income available to common shareholders, preferred dividends are subtracted from net income before dividing.