Download our Earnings per Share (EPS) Template and calculate a company’s earnings per share crucial for valuation and analyzing profitability. EPS represents the portion of a company’s profit allocated to each outstanding share of common stock.
What is Earnings per Share (EPS)?
Earnings per share (EPS) measures the amount of net income earned on a per-share basis. It is calculated by taking a company’s net income allocated to common shareholders and dividing by the weighted average number of common shares outstanding. EPS serves as a profitability metric to value a company on a relative basis.
Earnings per Share Formula
EPS formula helps investors understand how much profit a company is generating per outstanding share of its stock. It is a fundamental metric used in financial analysis to evaluate a company’s profitability and performance.
Download the Free EPS Template
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How to Use the EPS Template
- Input the net income figure from the company’s income statement into the blue input cell.
- Enter the preferred dividend payment (if applicable) and common shares outstanding data.
- If there are any non-controlling/minority interests, input the net income attributable to that line item.
- The template will calculate the net income available to common shareholders after preferred dividends and non-controlling interests.
- Input the weighted average common shares outstanding.
- The basic EPS metric will be calculated for you.
Importance of EPS
EPS is one of the most quoted data points for public companies and an important input in stock valuation models. By using a standardized EPS calculation template, you ensure an apples-to-apples comparison across companies and time periods. Download the free template today to add rigor to your financial statement analysis and valuation projects.