Earnings per Share (EPS)
Calculate the earnings per share (EPS), a valuation ratio that measures the amount of net income earned per share of outstanding common stock.
The earnings per share (EPS) is a widely used financial metric that helps investors understand the profitability of a company on a per-share basis. It provides insight into the portion of a company’s earnings that is allocated to each outstanding share of its common stock. EPS is an important measure for investors and analysts when assessing a company’s financial performance and comparing it to other companies.
The formula is as follows:
\[\text{Earnings per Share} (\text{EPS}) = (\text{Net Income} - | \text{Preferred Dividends Paid} |) / \text{Weighted Average} (\text{Diluted}) \text{Shares}\]The preferred dividends are only deducted when include_dividends is True; with the default, EPS is net income divided by the weighted average (diluted) shares.
Also known as: EPS, net income per share.
Earnings per Share (EPS) in Python or via the MCP
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_earnings_per_share as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(
["V", "MA", "AXP"],
api_key="FINANCIAL_MODELING_PREP_KEY",
start_date="2021-01-01",
end_date="2025-12-31",
)
toolkit.ratios.get_earnings_per_share()
Or, after setting up the Finance Toolkit MCP, ask:
What were the diluted earnings per share of Visa, Mastercard and American Express from 2021 to 2025?
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AXP | 10.0215 | 9.8404 | 11.212 | 14.0182 | 15.375 |
| MA | 8.7571 | 10.2266 | 11.834 | 13.8878 | 16.6682 |
| V | 5.6266 | 7.0023 | 8.2844 | 9.7304 | 10.0982 |
Parameters
get_earnings_per_share accepts the following parameters.
| Parameter | Type | Description | Example |
|---|---|---|---|
include_dividends | bool | Whether to deduct the preferred dividends paid from net income. Defaults to False. | True |
diluted | bool | Whether to use diluted earnings per share. Defaults to True. | False |
rounding | int | None | The number of decimals to round the results to. Defaults to None, which uses the rounding of the Toolkit (4 unless set otherwise). | 2 |
growth | bool | Whether to calculate the growth of the ratios. Defaults to False. | True |
lag | int | list[int] | The lag to use for the growth calculation. Defaults to 1. | 4 |
compound | bool | Whether the growth is the compound annual growth rate over the lag (e.g. lag=5 for the five-year CAGR) instead of the total change. Defaults to False. | False |
standardize | bool | Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False. | True |
trailing | int | The number of periods to sum flows (income and cash flow statement items) over, with balance sheet items averaged over the same number of period ends. E.g. 4 with quarterly data gives the trailing twelve months (TTM) and 3 with annual data a three-year cumulative figure. Defaults to None, which uses single-period flows (per quarter and not annualized with quarterly data). | 4 |