Diluted Earnings per Share Formula

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Diluted Earnings per share is a performance metric used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. Check FAQs
Diluted EPS=NIWASO+CDS
Diluted EPS - Diluted Earnings per Share?NI - Net Income?WASO - Average Shares?CDS - Other Convertible Securities?

Diluted Earnings per Share Example

With values
With units
Only example

Here is how the Diluted Earnings per Share equation looks like with Values.

Here is how the Diluted Earnings per Share equation looks like with Units.

Here is how the Diluted Earnings per Share equation looks like.

8.6779Edit=200000Edit47.042Edit+23000Edit
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Diluted Earnings per Share Solution

Follow our step by step solution on how to calculate Diluted Earnings per Share?

FIRST Step Consider the formula
Diluted EPS=NIWASO+CDS
Next Step Substitute values of Variables
Diluted EPS=20000047.042+23000
Next Step Prepare to Evaluate
Diluted EPS=20000047.042+23000
Next Step Evaluate
Diluted EPS=8.67790322072568
LAST Step Rounding Answer
Diluted EPS=8.6779

Diluted Earnings per Share Formula Elements

Variables
Diluted Earnings per Share
Diluted Earnings per share is a performance metric used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised.
Symbol: Diluted EPS
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Net Income
Net income is a company's total earnings.
Symbol: NI
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Average Shares
Average Shares are the average of the company's shares.
Symbol: WASO
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Other Convertible Securities
Other Convertible Securities are all outstanding convertible preferred shares, convertible debentures, stock options (primarily employee-based) and warrants.
Symbol: CDS
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.

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How to Evaluate Diluted Earnings per Share?

Diluted Earnings per Share evaluator uses Diluted Earnings per Share = Net Income/(Average Shares+Other Convertible Securities) to evaluate the Diluted Earnings per Share, Diluted Earnings per Share is a performance metric used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. Diluted Earnings per Share is denoted by Diluted EPS symbol.

How to evaluate Diluted Earnings per Share using this online evaluator? To use this online evaluator for Diluted Earnings per Share, enter Net Income (NI), Average Shares (WASO) & Other Convertible Securities (CDS) and hit the calculate button.

FAQs on Diluted Earnings per Share

What is the formula to find Diluted Earnings per Share?
The formula of Diluted Earnings per Share is expressed as Diluted Earnings per Share = Net Income/(Average Shares+Other Convertible Securities). Here is an example- 8.677903 = 200000/(47.042+23000).
How to calculate Diluted Earnings per Share?
With Net Income (NI), Average Shares (WASO) & Other Convertible Securities (CDS) we can find Diluted Earnings per Share using the formula - Diluted Earnings per Share = Net Income/(Average Shares+Other Convertible Securities).
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