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.

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

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 ...

Earnings yields are calculated as earnings per share divided by share price ... Learning how to calculate, interpret, and use an earnings yield helps you make well-rounded investment decisions.

Estimates of a company’s future earnings usually are reported on a per-share basis, either for a quarter or a fiscal year. Earnings estimates are the projected profits of a company for a period.

Take the retained earnings at the beginning of the ... Using this method to calculate dividends per share may not be 100% accurate because a company may increase or lower its dividends (they ...