If a company has convertible bonds, convertible preferred stock, "in the money" options, or any other types of securities that can be converted to common stock, the company's EPS figure might be diluted from the increase in common shares outstanding that would occur if and when the securities are converted.
If a company has any of these convertible securities they are then required to disclose what is referred to as, their fully diluted earnings per share.
With that, let's use the Earnings Per Share Calculator to calculate the EPS ratio of a company you wish to compare or forecast growth for.
Earnings Per Share Calculator
Instructions: Enter net income, the amount of preferred stock dividends paid, and the number of common shares outstanding, then click the "Calculate Earnings Per Share Ratio" button.
Mouse over the blue question marks for a further explanation of each entry field. More in-depth explanations can be found in the glossary of terms located beneath the Earnings Per Share Calculator.
No comments:
Post a Comment