The earnings per share formula is useful for valuing stocks. It’s a key part of the widely-used price-to-earnings ratio. And by gaining a better understanding of these concepts, you can make better ...

When calculating earnings per share, it’s important to know that the earnings are actual and not an accounting trick.

The earnings-per-share formula has three inputs. You will need to know a company's net income, preferred dividends and the average number of common shares outstanding. Here is the formula for ...

The formula for diluted earnings per share is a company's net income (excluding preferred dividends) divided by its total share count -- including both outstanding and diluted shares. The most ...

The earnings per share ratio is calculated with this formula: For example, a company has: Net income of $10 million. Preference (preferred) dividends of $1 million. 20 million shares (weighted ...

A company's "earnings available for common stockholders" is the profit it has left over at the end of an accounting period ... and to a company's earnings per share, or EPS, because these numbers ...

David has helped thousands of clients improve their accounting and financial ... In cell B7, input the formula "=B6/B5" to render the EPS ratio. Earnings per share (EPS) is an important ...

Here’s the formula: Earnings per share = ( Net income – preferred dividends ) / Outstanding shares of common The resulting EPS tells you how much a company is earning for each outstanding ...

EPS represents profitability per share ... in earnings, total number of shares outstanding, or both. A company can boost its EPS by increasing its earnings or reducing its share count through ...