How to Calculate Earnings Per Share
Suppose we have the following information about a company. The EPS calculator uses the following basic formula to calculate earnings per share. 8 Financial Ratio Analysis That Every Stock Investor Should Know Financial Ratio Money Management Advice Finance Investing In the examples below the employee earns 35000 per year through their salary and 10000 in commission. . The reason for stating diluted earnings per share is so that investors can determine how the earnings per share attributable to them could be reduced if a variety of. EPS is the earnings per share I is the net income of a company D is the total amount of preferred stock dividends S is the weighted average number of common shares outstanding. Therefore the employer would contribute 1050 and the employee would contribute 1750. The PE ratio is calculated by dividing the stock price by the latest 12 months earnings. Weighted earnings per share is a more accurate