Find the company’s net income from the income statement
Subtract preferred dividends, if any
Find the weighted average number of outstanding common shares
Divide net income available to common shareholders by the weighted average shares outstanding
Use the formula: EPS = (Net Income – Preferred Dividends) / Weighted Average Common Shares Outstanding
For diluted EPS, include the effect of convertible securities, options, and warrants
Check the financial statements or earnings reports for the reported EPS value