How to Calculate EPS (TTM)

How to Calculate EPS (TTM)
Calculate EPS (TTM)

Determine the company's net income, preferred dividends and outstanding common stock. A company discloses net income and preferred dividends on the firm's income statement. The company's balance sheet documents the amount of outstanding common stock. For example, Firm A has $100,000 of net income, $1,000 preferred dividends and 500 outstanding common shares of stock for the previous 12 months.

Subtract the preferred dividends from net income. In our example, $100,000 minus $1,000 equals $99,000.

Divide the number calculated in Step 2 by the amount of common shares outstanding to determine TTM earnings per share. In the example, $99,000 divided by 500 shares equals $198 per common share.