L9_Dilution_and+_EPS - Diluted Earnings and EPS 1 Earnings...

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1 Diluted Earnings and EPS
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2 Earnings per Share Most popular performance measure for listed companies Fundamental to share valuations - basis of P/E multiples Normally reported in financial statements : Basic earnings per share ( BEPS ) Diluted earnings per share ( DEPS ) EPS reported for ordinary shares only
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3 EPS Shares of Number Earnings EPS But not all earnings are attributable to ordinary shareholders. What if the number of shares changed in the year?
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