EPSS Calculator

Calculate the Estimated Profit Per Share (EPSS) to evaluate a company's profitability on a per-share basis.

How to Use This Calculator

Enter the company's net income for the period
Input the total preferred dividends paid during the period
Provide the weighted average number of shares outstanding
Select the reporting period (quarterly or annual)
Adjust the expected growth rate slider if you want to project future EPSS
Click Calculate to see the Estimated Profit Per Share results

Formula Used

EPSS = (Net Income - Preferred Dividends) / Weighted Average Shares Outstanding

Where:

Net Income = Total earnings after taxes and expenses
Preferred Dividends = Dividends paid to preferred shareholders
Weighted Average Shares Outstanding = Average number of shares during the period

Example Calculation

Real-World Scenario:

Let's calculate the EPSS for a tech company with the following financial data:

Given:

Net Income = $500 million
Preferred Dividends = $20 million
Weighted Average Shares Outstanding = 100 million shares

Calculation:

EPSS = ($500 million - $20 million) / 100 million shares

EPSS = $480 million / 100 million shares

Result: $4.80 per share

Why This Calculation Matters

Practical Applications

Comparing profitability between companies of different sizes
Assessing company performance over time
Evaluating potential investment opportunities

Key Benefits

Standardizes profitability measurement across companies
Helps determine fair stock valuation
Indicates potential for dividend payments and reinvestment

Common Mistakes & Tips

Always use the weighted average number of shares outstanding rather than the current or basic share count. The weighted average accounts for changes in share count throughout the period, providing a more accurate EPSS calculation.

Remember to subtract preferred dividends from net income before dividing by shares outstanding. Preferred dividends are paid to preferred shareholders before common shareholders, so they must be excluded from the profit available to common shareholders.

Frequently Asked Questions

EPSS (Estimated Profit Per Share) is similar to EPS (Earnings Per Share) but includes projections and estimates for future periods. While EPS is based on historical data, EPSS can incorporate growth expectations and future projections to provide a more forward-looking metric.

For investors, calculating EPSS quarterly is recommended to track performance trends. For company management, monthly calculations might be useful for internal decision-making. Always compare EPSS over the same time periods for accurate trend analysis.

A "good" EPSS varies by industry and company size. Generally, a positive and growing EPSS is desirable. It's more important to compare a company's EPSS to its historical performance and to similar companies in the same industry rather than looking for a specific numerical value.

References & Disclaimer

Financial Disclaimer

This calculator provides estimated values for informational purposes only. It should not be used as the sole basis for investment decisions. Always consult with a qualified financial advisor before making investment decisions.

References

Understanding Earnings Per Share (EPS) - Investopedia article explaining EPS calculation and interpretation
SEC Financial Reporting Guidelines - Official guidelines for financial metrics reporting
Earnings Per Share (EPS) Guide - Corporate Finance Institute's comprehensive guide to EPS

Accuracy Notice

The EPSS calculator provides estimates based on the inputs provided. Actual results may vary due to factors not considered in this calculation, such as one-time events, accounting changes, or other special circumstances. This tool is not a substitute for professional financial analysis.

About the Author

Kumaravel Madhavan

Web developer and data researcher creating accurate, easy-to-use calculators across health, finance, education, and construction and more. Works with subject-matter experts to ensure formulas meet trusted standards like WHO, NIH, and ISO.

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