How to Calculate EPS (Earnings Per Share)

This video explains how to calculate Earnings Per Share (EPS) and uses the formula to solve an example problem.
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Пікірлер: 44

  • @waeldalgamouni6837
    @waeldalgamouni68378 жыл бұрын

    Big thanks for your amazing efforts and beautiful way of explaining things specially when you come on the reasons behind certain accounting treatments and calculations....

  • @flake8382
    @flake83822 жыл бұрын

    Thanks for going over what happens if preferences are declared, or otherwise entitled. Makes perfect sense, but explaining it cements the matter.

  • @Edspira

    @Edspira

    2 жыл бұрын

    Thank you!

  • @kayecena5773
    @kayecena57733 жыл бұрын

    Thanks for this video. Do you also have a video showing the calculation of WA common shares outstansing showing stock dividends, stock split, stock options, treasury shares, newly issued shares? How do you treat these kinds of changes in stocks?

  • @gatsbymovingrubber
    @gatsbymovingrubber8 жыл бұрын

    Thanks, You pretty much taught all of my accounting. My teacher didn't teach me anything.

  • @umerbutt9240

    @umerbutt9240

    6 жыл бұрын

    Many of teachers are there for teach with different way but, you understand one of them. that''s doesn't mean other are irresponsible i.e. you mentioned didn't teach me anything. Please as a very humble if you get something from just appreciate not blaming other ones. never mind if i hurt you. Good day

  • @ClaytonHoward

    @ClaytonHoward

    4 жыл бұрын

    My professor used this guys videos in class lol

  • @jacobwhitner9475

    @jacobwhitner9475

    3 жыл бұрын

    @@umerbutt9240 Ive had three accounting professors. All of them would rather have us refer to "Our infinite resources" such as KZread rather than teach the concepts. Not everyone grasps this hard ass math without thought.

  • @hanudarji1344

    @hanudarji1344

    3 жыл бұрын

    Or maybe you did not pay good attention. Probability.

  • @hamzaim647

    @hamzaim647

    Жыл бұрын

    @@ClaytonHoward great!

  • @SSlava21
    @SSlava2110 жыл бұрын

    Awesome video! Keep it up!

  • @baileyjoshA13
    @baileyjoshA137 жыл бұрын

    Do I have to a calculation of Company Net Income take away dividends and then divide it to Common Shares

  • @chloechau_aerial
    @chloechau_aerial7 жыл бұрын

    what's the programme that u r using?

  • @JaimeB-gg6to
    @JaimeB-gg6to Жыл бұрын

    Great recap of EPS

  • @marionsalvatore3687
    @marionsalvatore36872 жыл бұрын

    Much needed

  • @Taxconsultantancy_.
    @Taxconsultantancy_.Ай бұрын

    Watching after ten year's 😮

  • @TruePromise
    @TruePromise7 жыл бұрын

    Greet but pleas can you make video about stock compensation

  • @rudysassafras
    @rudysassafras5 жыл бұрын

    Great videos! Could you explain how to calculate the weighted average common shares outstanding?

  • @flake8382

    @flake8382

    2 жыл бұрын

    @Bruno Kenji Great answer. Is this always weighted average based on time? or can ((end)+(start))/2 also work? I think I saw the latter in my training notes for post-grad qualification, but the former makes more sense and provides a less distorted figure.

  • @RakibHasan-ii7yq
    @RakibHasan-ii7yq Жыл бұрын

    What if the ebit is negative figure? How to calculate eps?

  • @一点一滴学英文
    @一点一滴学英文6 жыл бұрын

    I have a question about BEPS. If preferred stock was converted into common stock within a year, should the weighted-average number of common stock include the converted common stock in calculating BEPS? Thanks !

  • @Edspira

    @Edspira

    6 жыл бұрын

    Once the stock has been converted from preferred stock to common stock, it is treated like common stock. Thus, it would be included in the weighted average in the month it converted to common stock and all the future months.

  • @一点一滴学英文

    @一点一滴学英文

    6 жыл бұрын

    Edspira thank so much for your reply! Always appreciated for your help!!

  • @denisfogarty1276
    @denisfogarty12765 жыл бұрын

    Do yuo have an example of a EPS rights issue e.g. Marks plc has produced the following net profit figures: 2017 €1.1m 2016 €1.5m On 1 January 2016 the number of shares outstanding was 500,000. During 2017 the company announced a rights issue with the following details: Rights: 3 new shares for each 5 outstanding (300,000 new shares in total) Exercise price: €5.00 Date of rights issue: 1 May 2017 The market (fair value) of one share in Marks plc immediately prior to exercise was €11. Required Calculate EPS for 2017 and the 2016 figure as it would appear in the financial statements for 2017 and 2016.

  • @lilyvalleyyy
    @lilyvalleyyy3 жыл бұрын

    Net income was net income after tax or before tax?

  • @baileyjoshA13
    @baileyjoshA137 жыл бұрын

    I understand it now

  • @Edspira

    @Edspira

    7 жыл бұрын

    Great!

  • @YN07718
    @YN077185 жыл бұрын

    I only see Common stock on my sheet not common shares

  • @resupedint
    @resupedint7 жыл бұрын

    Thanks What will be the formula if Tax have been paid?

  • @RinoO-4

    @RinoO-4

    5 жыл бұрын

    i want to know the answer for that too ?!

  • @abrarahmad6370

    @abrarahmad6370

    3 жыл бұрын

    Bro, net income simply means profit after tax and other deductions. So what are you talking?

  • @riskdangerous3154
    @riskdangerous31544 жыл бұрын

    I have questions. Supa Inc. is considering plans A and B for financing their new Systems project of OMR 6 million. Plan A involves issuance of 250,000 shares of common stock at the current market price of OMR 2 per share. Plan B involves issuance of OMR 5 million, 8% bonds at face value. Income before interest and taxes on the new plant will be OMR2.5million. Income taxes are expected to be 20%. Supa, Inc. currently has 100,000 shares of common stock outstanding. Advice Supa Inc. as to which plan would be better and why?

  • @riskdangerous3154

    @riskdangerous3154

    4 жыл бұрын

    Can you please answer this question!!😢

  • @spectra7gaming471
    @spectra7gaming4712 жыл бұрын

    How do you record dividends that are cumulative that have not been declared? How do you record a value that does not exist? Do you project one?

  • @xkrimzonxrsps

    @xkrimzonxrsps

    8 ай бұрын

    Look at the dividend $ amount or find the % value $ amount then ÷ it by 12 if paid monthly or ÷4 if they pay quarterly

  • @coreyh7323
    @coreyh73233 жыл бұрын

    Saying how and implementing it on a search is extremely frustrating. There are a lot of crappy stocks with super low volume that have low P/E ratios. And of course you want to scan for +EPS to come up with a +P/E? If scanning on FINVIZ, how would you go about it?

  • @yuekai3794
    @yuekai37946 жыл бұрын

    why trader or investor should look for EPS of particular company?

  • @Edspira

    @Edspira

    6 жыл бұрын

    The earnings per share is a useful measure of profitability when compared with EPS of other similar companies. It gives a view of the comparative earning power of companies. You can also look at EPS over time and see if the earning power of the company has improved or deteriorated.

  • @reviewithme9913
    @reviewithme99133 жыл бұрын

    Is that net income for quarterly or annual?

  • @vv-hz4hb

    @vv-hz4hb

    2 жыл бұрын

    It depends on the accounting period which is rarely less than 12 months.

  • @manojm1n
    @manojm1n6 жыл бұрын

    Eps 60c Dividend cover 2.5 Published dividend yield 4.8% What is the price of ordinary shares Can you answer this

  • @Edspira

    @Edspira

    6 жыл бұрын

    Sorry, but I don't have the time to help people solve individual homework problems. Hopefully one of the viewers can help you out. Best of luck to you!

  • @vishaldahiya1222

    @vishaldahiya1222

    2 жыл бұрын

    @@Edspira sir who to find estimated eps please tell me

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