EPSS Calculator

The EPSS Calculator estimates Estimated Profit Per Share based on net income, preferred dividends, and shares outstanding. This tool helps investors evaluate a company's profitability on a per-share basis for better investment decisions. Whether you are comparing different company sizes or projecting future earnings, this calculator provides clear financial insight to guide your portfolio strategy.

Total net income of the company (in millions)
Total preferred dividends paid (in millions)
Number of shares outstanding during the period (in millions)

How Estimated Profit Per Share Is Calculated

Estimated Profit Per Share (EPSS) measures the portion of a company's profit allocated to each outstanding share of common stock. It provides a clear view of a company's profitability by normalizing earnings against the number of shares.

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

Where:

  • Net Income = Total earnings after expenses
  • Preferred Dividends = Payments to preferred shareholders
  • Weighted Average Shares Outstanding = Average shares over the period
  1. Subtract preferred dividends from the total net income to find profit available to common shareholders.
  2. Divide the remaining profit by the weighted average number of shares outstanding.
  3. Adjust the result based on your selected reporting period to ensure accuracy.

What Your Estimated Profit Per Share Means

Your result represents the specific dollar amount of net income allocated to each outstanding share of common stock. This figure strips away the total size of the company, letting you see the pure earning power of a single share of stock.

Investment Scenarios

High Growth Potential: An EPSS above $5.00 often signals a mature or rapidly expanding business. Investors looking for capital appreciation should prioritize these figures alongside growth rate projections.

Stable Income Seeking: If the EPSS ranges from $1.00 to $4.00, the company likely generates steady cash flow. This range is typical for established firms that prioritize consistent dividend payments over aggressive expansion.

Important: Remember that a high EPSS does not automatically mean a stock is cheap. You must compare this number to the actual share price to determine the full value.

This calculator is for educational purposes only and does not constitute professional financial advice. Actual investment returns may vary due to market conditions, and you should always consult a qualified financial advisor before making investment decisions.