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.

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.

Below, we explain the formula used to calculate the pension amount you can expect after retirement. Understanding the EPS Pension Calculation Formula The pension amount under EPS is determined ...

EPS is a commonly used measure of a company’s profitability, and it is used in the calculation of other popular valuation metrics like the price-to-earnings (P/E) ratio. To calculate earnings ...

You can also calculate an earnings yield by dividing the company's market capitalization into net income. This formula produces the same answer as the EPS divided by the share price. The result is ...

To calculate a company's P/E ratio, divide the price of one share of that company's stock by the earnings per share (often abbreviated EPS) of that company’s stock over a period of 12 months.

The Benjamin Graham formula is a fundamental tool in value investing, designed to estimate a company’s intrinsic value based on its earnings performance and market conditions. It was developed ...