Earnings per share (EPS) is a financial metric that measures a company's profitability. In this lesson, you will learn how to calculate EPS in Excel.

Let's build the earnings per share calculator in Excel. To calculate EPS in Excel first you need some data. You need: Net Income, Outstanding Shares and Preferred Dividends.

## How to calculate EPS?

The formula to calculate EPS is as follows:

Earnings Per Share = Net Income / Outstanding Shares

Copy and paste this eps formula into cell B4: **=B2/B3**

## How to calculate weighted EPS?

The formula to calculate weighted EPS is as follows:

Weighted Earnings Per Share = (Net Income - Preferred Dividends) / Outstanding Shares

Copy and paste this roi formula in cell B5: **=(B2-B3)/B4**

Downloand a free sample spreadsheet here.

Note: The formula assumes that the net income and outstanding shares figures are up-to-date and accurate. It's important to obtain this information from reliable sources, such as the company's financial statements or financial data providers. Also, keep in mind that EPS is just one financial metric, and it's important to consider a range of other factors when evaluating a company's financial performance and potential for investment.

Further reading: How to calculate ROE? How to calculate ROA? How to calculate ROI? How to calculate ROCE? How to calculate Weighted Average?