Calculating Revenue per Share: A Key Financial Ratio

Scrab 2.0 is here!

Revenue per share is a financial ratio that measures a company's revenue generated per outstanding share of its common stock. It is calculated by dividing a company's total revenue by the number of shares outstanding.

The formula for calculating revenue per share is:

Revenue per share = Total revenue / Number of shares outstanding

Example:

Company has total revenue of $10 million and has 1 million shares outstanding. To calculate the revenue per share, we would divide the total revenue by the number of shares outstanding:

Revenue per share = $10,000,000 / 1,000,000 = $10

This means that the company generated $10 in revenue for every outstanding share of its common stock.

‍

Start your 7-day free trial

Automate your research and quickly find undervalued stocks.

Get Started →

No credit card required

Cancel anytime

All investing involves risk, including the possible loss of all the money you invest, and past performance does not guarantee future performance. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes and may not reflect actual future performance. By using this website, you understand the information being presented is provided for informational purposes only and agree to our Terms of Use and Privacy Policy. Scrab relies on information from various sources believed to be reliable but cannot guarantee the accuracy and completeness of that information. Nothing in this communication should be construed as an offer, recommendation, or solicitation to buy or sell any security.