How to Find Basic Earnings Per Share (EPS) for Any Company

Many investors and financial analysts use earnings per share (EPS) as a key metric to evaluate a company's profitability. In this guide, we will explain how to find the basic EPS for any publicly traded company. Whether you are using a financial app, visiting the Securities and Exchange Commission (SEC) website, or consulting traditional sources, we will cover all the bases to help you accurately determine a company's basic EPS.

Methods to Find Basic EPS

There are several methods and platforms available to find the basic EPS of a company, depending on your preference and availability of information. Here are the most common and reliable ways:

1. Financial Apps and Online Platforms

Many financial applications and platforms offer the basic EPS directly. These platforms often have user-friendly interfaces that display this information alongside other financial metrics. If a financial app does not provide this information, you can always calculate it yourself by following the steps in this guide.

2. SEC Website

The United States Securities and Exchange Commission (SEC) provides a wealth of financial information through their website. You can access these documents by visiting the SEC's Company Search Page. Enter the company's ticker symbol and select the appropriate filing to view the details, including the basic EPS.

3. Brokerage Platforms

Your brokerage platform also likely contains this information for the tickers you are interested in. Most platforms provide various reports and financial statements, which include the basic EPS.

4. Third-Party Financial Platforms

A popular third-party platform like Finviz can also be used to find information on EPS. Simply enter the company's ticker symbol into Finviz's stock screener. Beside basic EPS, Finviz offers additional tools and resources for stock screening and analysis.

Where to Find Basic EPS in Financial Statements

The basic EPS is typically found in the company's financial statements, specifically within the income statement. Here’s a breakdown of where you might find it:

1. SEC Filing and Annual Reports

To find detailed financial statements, including the basic EPS, you can visit the SEC's website and search for the company's filing. Alternatively, you can find annual reports published by large companies in publications like the Wall Street Journal or Investor's Business Daily. These reports often provide earnings details, including both basic EPS and diluted EPS.

2. Income Statement

The basic EPS is usually listed at the bottom of the income statement, after net income. Here's a simple way to calculate the basic EPS using the information from the income statement:

Basic EPS Net Profit / Shares Outstanding

3. Financial Footnotes

If you are looking for detailed information about how the basic EPS was calculated, you can find this in the footnotes of the financial statements. The company provides a detailed explanation of the calculation, which can be useful for understanding the theoretical underpinnings of the figure.

Understanding the Difference Between Basic and Diluted EPS

It's important to note that basic EPS is different from diluted EPS. Basic EPS is calculated by dividing the net profits by the shares outstanding, while diluted EPS includes all potential dilutive securities, such as stock options and convertible bonds. Here’s what the difference means:

1. Basic EPS

This measure only includes the shares outstanding and does not consider potential future issuances of stock. It provides a snapshot of the current profitability per share.

2. Diluted EPS

Diluted EPS takes into account the potential dilution from additional shares that could be issued in the future. It is a more conservative measure of earnings per share.

Conclusion

Understanding how to find and interpret basic earnings per share is a valuable skill for any investor or financial analyst. Whether you use technological tools or traditional sources, the key is to ensure you are using the most up-to-date and accurate information available. By mastering these methods, you can make more informed decisions about your investments and better understand a company's financial health.

For more detailed guidance on financial analysis and investment, consider consulting the author's book, which delves deeper into the intricacies of stock investing and financial reporting.