For example, I want count average EPS for 10 year for company and this company has stock split (2 to 1) in this 10 years.

Do I need to take this into account calculating average EPS for this 10 years or not?

P.S. I asked this question to several people who works in finance, and they gave me opposite answers.


If you want to compare with today's price, divide the EPS before the split by the ratio of the split (by 2 in this case). If you want to compare with the old price, do the reverse and multiply EPS by 2 after the split.

Splits are definitely a factor when calculating EPS, which is in dollars. They're not a factor when calculating the P/E ratio (or the similar earnings yield), because the stock price is already adjusted for. I'd recommend using those for historical analysis, so you don't have to worry about splits.

  • And if I dont't want compare with old or current price, but want just know average EPS for 10 years - do I need multiply on split value before or after (or this not matter)? – canny_wasp Apr 9 '19 at 15:50
  • EPS is not a standalone metric, it always depends on price. I can tell you my company has EPS of $10, but unless you know the stock price, you can't tell whether that's good or not. E.g. the stock could be $20 per share, or it could be $10,000. – wide.writing.immediately Apr 9 '19 at 16:04

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