Per-Share
EPS — Earnings Per Share (Diluted)
Net income divided by diluted shares outstanding.
Definition
Earnings per share converts the company's bottom-line profit into a per-share number. The 'diluted' version assumes all stock options, warrants, and convertible securities are exercised — giving a more conservative count than 'basic' EPS.
Formula
Net Income ÷ Diluted Shares Outstanding
Why it matters
EPS is the most-quoted profitability number. Per-share metrics matter because the shareholder cares about their slice — not the total — and management can grow the total while diluting your slice via share issuance.
How Standard Equity uses it
We always use diluted EPS, never basic. Tracked across history and projected for the current and next fiscal year with an Estimate Spread. Where analysts do not cover a year, the estimate for every company but a holding company is projected net income over the share count carried flat, so EPS always equals net income over shares. Where one to three analysts cover it, their figure is mixed with ours (see Blended Consensus).
The metric
| Category | Per-Share |
|---|---|
| Unit | $ |