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EPS ( Earning Per Share ) formula

Navigasi - The EPS formula is basically a simple and simple formula, so simple, this formula can be practiced easily for anyone who wants to calculate EPS in a particular company's financial statements.

EPS ( Earning Per Share ) formula
EPS ( Earning Per Share ) formula

In terms of Earning Per Share (EPS) is a ratio that shows how much profit (return) is obtained by investors or shareholders per share (Fakhuruddin, 2011: 195)

In addition, there are also those who state that Earning Per Share (EPS), is a comparison between the net profit after tax obtained by the issuer with the number of shares outstanding (Halim, 2015:16)

Meanwhile, according to Fahmi (2012: 96) Earning Per Share is: "Earnings per share (earnings per share) is the profit obtained from the distribution of net income after tax (EAT) with total shares".

Based on the understandings of EPS as described by the experts above, the writer can understand that basically Earning Per Share (EPS) is one of the ratios commonly used in the prospectus for presentation materials and annual reports to shareholders which is net income minus dividends (earnings). available to common stockholders) divided by the weighted average of ordinary shares outstanding will produce earnings per share, so Earning Per Share (EPS) is the amount of income earned in one period for each share outstanding.

EPS is the result that will be received by shareholders for the shares they own for their participation in the company. EPS tends to rise, the possibility of profits obtained by investors is greater than the losses that may occur.

Thus the amount of EPS can be used as a benchmark for the success of a company where high EPS indicates a better level of welfare for shareholders.

EPS is one indicator that can show the company's performance, because the size of the EPS will be determined by the company's profit. EPS calculation can be formulated as follows:

EPS = Net Profit After Interest and Tax : Number Of Shares Outstanding

Understanding the formula above, it is easy for readers to practice it directly.


If the net profit of a company is Rp. 5,000, while the number of outstanding shares is 200 shares, then the way to get the EPS value is 5,000 divided by (/) 200. The result is 25. So the EPS of the company in this example is "25".