Equity Valuation

Diluted Earnings Per Share

Definition

What is Diluted Earnings Per Share?

Earnings per share assuming potentially dilutive securities convert into ordinary shares.

Example in practice

Employee options increase the diluted share count and reduce diluted EPS.

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Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

Earnings per share calculated using actual weighted average ordinary shares outstanding.

The accounting value of shareholders' equity.

Cash generated or used by a company's core operations.

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