Profitability
Diluted earnings per share
Diluted EPS
What it is
Net income spread across every share that COULD exist — including options and stock promised to employees, as if already issued.
How to read it
It's the cautious version of earnings per share: it shows what your slice would be worth if every share promise were honoured. A wide gap versus basic EPS signals meaningful dilution ahead.
What it does not tell you
It only captures dilution already promised. Future share issuance obviously isn't in there.
Other measures — Profitability
Educational content. Polaris is not a registered investment adviser and makes no recommendation.