Diluted EPS
Diluted EPS is earnings per share calculated as if all dilutive stock options and convertibles had been turned into shares.
What it is
Diluted earnings per share is a more conservative version of EPS. It assumes that every security that could become a common share, such as employee stock options, warrants, and convertible bonds, actually does, as long as doing so would lower EPS. This spreads profit across a larger share count, so diluted EPS is always equal to or lower than basic EPS.
Why it matters
It shows the worst-case dilution today's shareholders could face, which matters most for companies that pay people heavily in options. A large gap between basic and diluted EPS is a warning sign that existing owners' stakes are being watered down.
How it's calculated
Adjust net income for the after-tax effect of dilutive convertibles, then divide by the weighted-average shares plus all dilutive potential shares (using the treasury-stock method for options); anti-dilutive securities are excluded.
How Quintarthai uses it
Diluted per-share figures are shown alongside basic EPS on the Ratios tab and in the Financials income statement for each company. Open a company page in the app to compare them.