EPS Calculator

Calculate Earnings Per Share - Basic and Diluted EPS

From income statement - profit after tax

Enter 0 if company has no preferred shares

From balance sheet or company announcements

Includes effect of ESOPs, convertible bonds, warrants

EPS Calculation Results

Basic EPS

₹10.00

Per share

Diluted EPS

₹9.52

Per share (conservative)

Net Earnings (Common)₹10,000 Cr
Basic Shares1,000 Cr
Diluted Shares1,050 Cr
⚠️

Dilution Impact

EPS reduced by 4.80% due to potential conversion of 50.00 crore shares from stock options, convertibles, or warrants.

Quick EPS Analysis

✓ Always use Diluted EPS for P/E calculations (more conservative)

✓ Compare EPS growth year-over-year for consistency

✓ Watch for high dilution (>5%) - indicates significant equity issuance

✓ Verify EPS growth is backed by revenue and cash flow growth

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Disclaimer

This calculator is for informational and educational purposes only. It does not constitute financial or investment advice. Consult with a qualified financial advisor before making investment decisions.

What is EPS Calculator?

The EPS (Earnings Per Share) Calculator helps determine a company's profitability on a per-share basis. EPS is calculated by dividing net income (minus preferred dividends) by the weighted average shares outstanding. It's one of the most important metrics for valuation, used in P/E ratio calculations and comparing company profitability. This calculator computes both basic EPS and diluted EPS (accounting for convertible securities).

How to Use This Calculator

  1. Enter the company's net income from income statement
  2. Input preferred dividends (if any) to exclude from common shareholders
  3. Specify weighted average shares outstanding
  4. For diluted EPS, enter diluted shares (including options, convertibles)
  5. Compare basic vs diluted EPS to understand potential dilution

Formula Used

Basic EPS = (Net Income - Preferred Dividends) / Weighted Average Shares Outstanding Diluted EPS = (Net Income - Preferred Dividends) / Diluted Shares Outstanding Dilution % = ((Basic EPS - Diluted EPS) / Basic EPS) × 100 Note: Diluted shares include effect of stock options, convertible bonds, and other dilutive securities

Example Calculation

Example: TCS Earnings Analysis Net Income (FY24): ₹50,000 crore Preferred Dividends: ₹0 Shares Outstanding: 3,600 crore Diluted Shares: 3,650 crore Basic EPS = 50,000 / 3,600 = ₹13.89 Diluted EPS = 50,000 / 3,650 = ₹13.70 Dilution = 1.37% If stock trades at ₹278: P/E Ratio = 278 / 13.89 = 20x

Frequently Asked Questions

What is a good EPS for a stock?

There's no universal 'good' EPS number - it depends on industry and stock price. Focus on: (1) EPS growth rate year-over-year (10-15%+ is excellent), (2) Consistent EPS growth over 5-10 years, (3) EPS compared to stock price (P/E ratio). High EPS with low P/E indicates potential value.

How is diluted EPS different from basic EPS?

Basic EPS uses current shares outstanding. Diluted EPS assumes all convertible securities (stock options, warrants, convertible bonds) are converted to shares. Diluted EPS is always lower and more conservative, showing worst-case dilution impact on earnings.

Should I buy stocks with high EPS growth?

High EPS growth (20%+) is attractive but verify: (1) Is growth sustainable or one-time event? (2) Quality of earnings (cash flow vs accounting changes), (3) Is stock price already reflecting growth expectations? (4) Industry tailwinds or company-specific factors?

Can EPS be manipulated?

Yes, companies can inflate EPS through: (1) Share buybacks (reduces denominator), (2) Aggressive accounting policies, (3) One-time gains inclusion. Always verify by checking cash flow from operations and quality of earnings alongside EPS.

What's the difference between EPS and revenue?

Revenue is total sales. EPS is profit per share after all expenses. A company can have growing revenue but declining EPS if costs grow faster. For shareholders, EPS growth matters more than revenue growth as it directly impacts stock value.

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