Diluted EPS is always less than its basic EPS. EPS measures the amount of a company’s profit on a per-share basis. Basic EPS doesn't account for the dilutive effects that convertible securities ...

Learn how to calculate earnings per share (EPS) and why it is an important gauge in determining a stock’s value and the profitability of a company.

Earnings per share ... securities on per-share earnings, companies also report the diluted EPS, which assumes that all shares that could be outstanding have been issued. For example, say the ...