how do you calculate eps using excel 
after collecting the necessary data input the net income into excel preferred dividends and number of common shares outstanding into three adjacent cells say b3 through b5 in cell b6 input the formula b3 b4 to subtract preferred dividends from net income in cell b7 input the formula b6 b5 to render the eps ratio the bottom lineearnings per share eps is an important profitability measure used in relating a stock s price to a company s actual earnings in general higher eps is better but one has to consider the number of shares outstanding the potential for share dilution and earnings trends over time if a company misses or beats analysts consensus expectations for eps its shares can either crash or rally respectively 