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
Basic EPS
₹10.00
Per share
Diluted EPS
₹9.52
Per share (conservative)
Dilution Impact
EPS reduced by 4.80% due to potential conversion of 50.00 crore shares from stock options, convertibles, or warrants.
✓ 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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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).
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.
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.
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?
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.
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.