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How to calculate Earnings per share

The Earnings per share formula, with plain worked examples you can check yourself.

Earnings per share = NI ÷ Shares

Worked examples

NI = 700 · Shares = 100Earnings per share = 7
NI = 600 · Shares = 200Earnings per share = 3
NI = 1800 · Shares = 200Earnings per share = 9

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Investing & Returns.

Related terms

DividendBondHedgingArbitrageLeverageAsset allocation

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