Learn how to calculate earnings per share (EPS) and why it is an important gauge in determining a stock’s value and the profitability of a company.

Some data sources simplify the calculation by using the number of shares outstanding at the end of a period. Earnings per share is one of ... input the net income into Excel, preferred dividends ...

To calculate earnings per share, divide a company’s annual or quarterly profit by the number of shares of stock it has outstanding. Note: If a company has both preferred and common stock ...