Earnings per share (EPS), basic and diluted

Basic EPS = net income (- preferred stock dividends) / Weighted average common shares outstanding. Diluted EPS has the same numerator but adds the additional dilution impact of any hybrid instruments ("if converted")

Category:

Howto & Style

Tags:

• EPS
• earnings per share
• basic eps
• diluted eps

[sonianoviango]

what if the date is in the middle of a month like may 24 or june 15 what do you do?? wish u would add this.

[sscollier90]

I'm in intermediate 2 at TTU and what you just explained in ten minutes has taken our teacher a week to try and describe. Thanks for clarifying everything and making it so easy to understand!!!

[Thalett]

Thank you so much for the video!!!

[suniltamkor]

Great Example

[SuperArc2]

@dkumar50

(1,000,000 shares * 9 months outstanding / 12 months in a year) + (1,400,000 shares * 3 months outstanding / 12 months per year) = 1,100,000 weighted average common shares outstanding

[dkumar50]

Thanks David - How did you get 1.1 million as a base value?