Diluted Earnings Per Share Calculator

Calculate Diluted Earnings Per Share





Formula

To calculate the Diluted Earnings Per Share (\(DEPS\)):

\[ DEPS = \frac{NI}{AS + OI} \]

Where:

What is Diluted Earnings Per Share?

Diluted earnings per share, also known as diluted EPS, is a financial term used to analyze earnings per share when taking into account other convertible instruments that could affect the overall EPS. This allows investors to make more accurate predictions of the future EPS of a company.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ DEPS = \frac{1,000,000}{500,000 + 50,000} = \frac{1,000,000}{550,000} \approx 1.82 \]

The Diluted Earnings Per Share is $1.82.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ DEPS = \frac{2,000,000}{1,000,000 + 200,000} = \frac{2,000,000}{1,200,000} \approx 1.67 \]

The Diluted Earnings Per Share is $1.67.