Diluted Earnings Per Share (Diluted EPS) Definition and Formula.

Diluted earnings per share (diluted EPS) is a measure of a company’s profit that takes into account the dilutive effect of stock options, warrants, and convertible securities. Diluted EPS is calculated by dividing the company’s net income by the weighted average number of shares outstanding, including dilutive securities. Dilutive securities are those that have the … Read more