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--- business:value_investing:earnings_per_share [2024/01/31 11:12] – created wikiadmin
+++ business:value_investing:earnings_per_share [2024/01/31 11:16] (current) – wikiadmin
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 [[https://www.investopedia.com/terms/e/eps.asp|
  Earnings Per Share (EPS): What It Means and How to Calculate It]]
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 . **Net Earnings (Profit)**: This represents the company's total earnings after deducting all expenses, taxes, interest, and preferred stock dividends. It's essentially the bottom line of the income statement.
-   \[ \text{Net Earnings} = \text{Revenue} - \text{Expenses} - \text{Taxes} - \text{Interest} - \text{Preferred Dividends} \]
+{{:business:value_investing:net_earnings_screenshot_2024-01-31_11-14-29.jpg|}}
 . **Outstanding Shares**: These are the total number of shares of common stock that have been issued by the company and are held by investors.
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 . **Basic EPS**: This is calculated by dividing the net earnings available to common shareholders by the weighted average number of outstanding common shares during the period. It doesn't consider dilution from convertible securities such as stock options or convertible bonds.
-   \[ \text{Basic EPS} = \frac{\text{Net Earnings}}{\text{Weighted Average Number of Outstanding Shares}} \]
+{{:business:value_investing:eps_screenshot_2024-01-31_11-13-17.jpg|}}
 . **Diluted EPS**: This accounts for the potential dilution of outstanding shares from convertible securities such as stock options, convertible bonds, or warrants. It assumes that these securities are converted into common stock, thus increasing the number of outstanding shares.
-   \[ \text{Diluted EPS} = \frac{\text{Net Earnings + Convertible Securities}}{\text{Weighted Average Number of Outstanding Shares + Conversion of Convertible Securities}} \]
+   {{:business:value_investing:diluted_eps_screenshot_2024-01-31_11-14-02.jpg|}}
 ### Significance of EPS: