Reviewed by Khadija Khartit Fact checked by Ariel Courage Earnings per share (EPS) is a common way of measuring the share of ...

Say that the calculation of EPS for three companies at the end of the fiscal year was as follows: The formula in the table above calculates the basic EPS of each of these select companies.

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.

The formula for P/E ratio is as follows ... Firstly, we’ll calculate the earnings per share (EPS) by using the earnings figures and the number of outstanding shares issued.