i What this calculator does
Earnings per share converts a company's total profit into a per-share figure, which is what makes two companies of different sizes comparable. It is the denominator of the P/E ratio and the input most valuation work starts from.
Two versions matter. Basic EPS divides profit by the shares in issue. Diluted EPS assumes every option and convertible instrument is exercised, which is the more conservative and usually the more honest number.
This calculator is for educational purposes only. Results are estimates and may vary depending on market conditions, spreads, commissions, platform settings, and exchange rates. It should not be considered financial advice.
How to use the Earnings Per Share Calculator
Every field has a working default, so the calculator produces a result the moment the page loads. Replace the defaults with your own figures and the output updates when you press the button.
- 1. Net Profit After Tax (R million)
- 2. Preference Dividends (R million) Deducted before EPS
- 3. Weighted Average Shares (million)
- 4. Potential Dilutive Shares (million) Options and convertibles
- 5. Current Share Price (R)
The result panel reports:
- Basic EPS Profit over shares in issue
- Diluted EPS Assuming all options exercised
- P/E on Diluted At
Alongside the headline figures, the calculator reports profit to ordinary holders, dilution effect, p/e on basic, earnings yield. Those are the numbers that usually explain why the headline result came out where it did.
The breakdown below the result shows every step of the arithmetic, so you can check the figure rather than trust it. The formula panel names each input as it is used, which is useful if you want to reproduce the calculation in a spreadsheet.
Frequently asked questions
What is headline earnings per share?
A South African measure required by the JSE that strips out capital items such as profits on the sale of assets, so the figure reflects operating performance. It is usually the number quoted in JSE results announcements, and it often differs materially from basic EPS.
Why use a weighted average share count?
Because the share count changes during the year through issues and buybacks. Weighting by the period each tranche was in issue matches the profit earned to the shares that earned it. Using the closing count overstates or understates EPS.
Should I use basic or diluted EPS?
Diluted, for valuation. Options and convertible instruments represent real claims on future profit, and assuming they are exercised is the conservative position. Basic EPS is the better measure of what happened; diluted is the better measure of what you own.
Does a share buyback raise EPS?
Mechanically yes, because the same profit is divided among fewer shares. Whether it creates value depends on the price paid. A buyback above intrinsic value raises EPS while destroying value, which is why the metric alone is not enough.
Where do I find these numbers for a JSE company?
In the results announcement on the company's investor relations page and on the JSE's SENS service. Annual and interim reports carry both basic and diluted figures, and the headline earnings reconciliation is a required disclosure.
Why is EPS growth different from profit growth?
Because the share count changes. A company can grow profit while issuing shares to fund that growth, leaving EPS flat. For a shareholder, EPS growth is the relevant number.
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