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.

After collecting the necessary data, input the net income into Excel ... In cell B7, input the formula "=B6/B5" to render the EPS ratio. Earnings per share (EPS) is an important profitability ...

Earnings per share is the quotient of a company's net income divided by the number of shares of stock it has outstanding. In other words, EPS is a company's profit expressed on a per-share basis.