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Terms Beginning with E
       
       
 

Earnings per Share diluted

Financial Term


Earnings per share diluted (EPS diluted) is a financial metric that measures the portion of a company's profit that can be attributed to each outstanding share of its common stock, after taking into account the potential dilutive impact of options, warrants, convertible bonds, and other securities that can be converted into common shares.

EPS diluted can be calculated by dividing the company's net income or earnings available to common shareholders by the total number of outstanding shares plus the potential dilutive shares, which is typically the number of outstanding stock options and convertible securities. This metric provides a more conservative view of earnings per share, as it considers the impact of potential dilution on existing shareholders.

EPS diluted is a key factor in valuing a company's stock, as it helps investors and analysts gauge the potential for future growth and returns. A higher EPS diluted indicates that a company has a higher profitability level and may have a stronger future growth potential, making it more attractive to investors and driving up its stock price. Conversely, a lower EPS diluted may indicate greater risk and lower future growth potential, resulting in a lower stock price.

In the financial industry, EPS diluted is widely used as a fundamental and quantitative tool to evaluate a company's financial health, compare its performance against industry or peer benchmarks, and make investment decisions. It is a vital metric for equity analysts, investors, and portfolio managers who seek to identify companies with a strong earnings potential and avoid those with weaker prospects.




Earnings per Share

   
     

Earnings per Share diluted

Financial Term


Earnings per share diluted (EPS diluted) is a financial metric that measures the portion of a company's profit that can be attributed to each outstanding share of its common stock, after taking into account the potential dilutive impact of options, warrants, convertible bonds, and other securities that can be converted into common shares.

EPS diluted can be calculated by dividing the company's net income or earnings available to common shareholders by the total number of outstanding shares plus the potential dilutive shares, which is typically the number of outstanding stock options and convertible securities. This metric provides a more conservative view of earnings per share, as it considers the impact of potential dilution on existing shareholders.

EPS diluted is a key factor in valuing a company's stock, as it helps investors and analysts gauge the potential for future growth and returns. A higher EPS diluted indicates that a company has a higher profitability level and may have a stronger future growth potential, making it more attractive to investors and driving up its stock price. Conversely, a lower EPS diluted may indicate greater risk and lower future growth potential, resulting in a lower stock price.

In the financial industry, EPS diluted is widely used as a fundamental and quantitative tool to evaluate a company's financial health, compare its performance against industry or peer benchmarks, and make investment decisions. It is a vital metric for equity analysts, investors, and portfolio managers who seek to identify companies with a strong earnings potential and avoid those with weaker prospects.




Earnings per Share

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