EPS vs Diluted EPS: Simple Explanation for Beginners (With Examples)

EPS vs Diluted EPS — two of the most important metrics in stock market investing — are widely misunderstood by beginners, and that misunderstanding is costing people real money every single day.

Here is your wake-up call: if you have ever looked at a company’s earnings per share, felt confident, made a decision, and then discovered the diluted EPS told a completely different story — congratulations, you just paid the most expensive tuition fee the stock market charges. And trust me, Wall Street does not give refunds. Not even store credit.

I am a trader. I have sat in front of screens watching numbers move for more years than I care to admit. I have seen grown adults cry over financial statements. I have seen people — brilliant, educated, well-dressed people — make catastrophic decisions because they could not tell the difference between basic EPS and diluted EPS. And I have laughed. Not because I am heartless. But because I once was that person.

This article is your shortcut to not being that person. We are going to break down EPS vs Diluted EPS with real examples, actual company data, academic research, and enough jokes to keep you awake — because let us be honest, accounting without jokes is just suffering. Buckle up. Class is in session.

Part One: What Even Is EPS?

The Basic Definition (And Why It Matters to You)

Earnings Per Share — EPS — is one of the most frequently cited metrics in all of finance. It tells you how much profit a company generates for each individual share of stock that is outstanding in the market. Think of it like splitting a pizza: the company’s total profit is the pizza, and the number of shares is the number of people at the table. EPS tells you how big your slice is.

The formula is breathtakingly simple:

Basic EPS = (Net Income − Preferred Dividends) ÷ Weighted Average Shares Outstanding

So if a company made £100 million in profit this year, and there are 50 million shares floating around in the market, the EPS is £2.00. Easy. Clean. Satisfying — like when your credit card statement actually makes sense for once.

Now, EPS matters to investors for several reasons. First, it is the foundation of the Price-to-Earnings (P/E) ratio, which is essentially how the entire investing world determines whether a stock is cheap or expensive. A company trading at 20x EPS means you are paying £20 for every £1 of annual earnings. Second, rising EPS over time is generally a signal that the company is becoming more profitable and efficient. Third, it lets you compare companies of wildly different sizes on a level playing field.

But — and this is a big but, and I like big buts and I cannot lie — basic EPS is not the full picture. Not even close.

The Weighted Average Shares: Why Timing Matters

One subtle thing that trips beginners up is the “weighted average” part. Companies do not always have the same number of shares all year. They might issue new shares in June, buy back shares in September, and hand out stock options in December. So instead of using the year-end share count, accountants calculate a weighted average — giving each share count a weight based on how long it was in effect during the year.

Imagine you had 10 million shares from January through June, then issued 2 million new shares in July. For the rest of the year (July through December), you had 12 million shares. Your weighted average would be:

First half: 10 million × 6/12 = 5 million (weighted)
Second half: 12 million × 6/12 = 6 million (weighted)
Total weighted average: 11 million shares

Not 10 million. Not 12 million. 11 million. Precision matters in finance. This is not a rounding suggestion — it is a legal requirement under accounting standards.

Speaking of legal requirements — that is where diluted EPS enters the chat.

Part Two: What Is Diluted EPS and Why Should You Care?

The “What If Everything Goes Wrong” Metric

Diluted EPS is basic EPS’s more anxious, more realistic cousin. While basic EPS counts only the shares that actually exist right now, diluted EPS counts all the shares that could exist — if every stock option got exercised, every convertible bond got converted, and every warrant got cashed in.

It is the financial equivalent of planning a dinner party and counting not just the people who confirmed, but also the maybes, the “I’ll try to come,” and the one cousin who shows up uninvited but still expects a plate. Diluted EPS plans for everybody at the table.

The formula for diluted EPS is:

Diluted EPS = (Net Income + Adjustments) ÷ (Weighted Average Shares + Potential Dilutive Shares)

The key word is dilutive. When more shares are added to the denominator, each existing share represents a smaller piece of the earnings pie. The earnings get spread more thinly — like trying to stretch a Tuesday night dinner across an unexpected family of eight.

What Are “Potentially Dilutive Securities”?

There are three main categories of securities that can dilute EPS:

1. Stock Options and Warrants

Companies routinely grant employees the right to purchase shares at a fixed price (called the “exercise price” or “strike price”) at some point in the future. When those employees eventually exercise those options, new shares get created — which dilutes existing shareholders. Lovely. You held your shares patiently for three years while Gerald in accounting quietly accumulated the right to issue himself a thousand new shares at last decade’s prices.

2. Convertible Bonds

Some corporate bonds come with a special feature: the bondholder can choose to convert their bond into company shares instead of receiving cash repayment. This sounds great for the bondholder. For existing shareholders? Less great. More shares = more dilution.

3. Convertible Preferred Stock

Similar concept — preferred shareholders may have the contractual right to convert their preferred shares into common shares. When this happens, the common share count rises, diluting EPS further.

Part Three: The Treasury Stock Method (Or “How Accountants Try to Be Fair”)

Calculating Dilution for Options

Accountants are nothing if not thorough. When calculating the dilutive effect of stock options, they use what is called the Treasury Stock Method (TSM). The logic works like this:

Assume all in-the-money options are exercised simultaneously
The company receives cash from employees paying the exercise price
That cash is used to buy back shares at the current market price
The net new shares added to the denominator is only the difference

For example: if 1 million options exist with a strike price of £10, and the current market price is £20, employees would pay £10 million to exercise. The company uses that £10 million to buy back shares at £20 — which buys back 500,000 shares. So only 500,000 net new shares get added (1 million minus 500,000).

It is a beautiful little balancing act. Like a financial seesaw — except one end has real money and the other end has theoretical money, and somehow that is all perfectly legal and proper.

This is not just my trader opinion. The Financial Accounting Standards Board (FASB) codified this in SFAS 128 (Statement of Financial Accounting Standards No. 128), issued in 1997, which established the current framework for computing and presenting EPS in financial statements. The standard requires companies to present both basic and diluted EPS on the face of their income statements — no exceptions for large, public companies.

Part Four: Real Numbers, Real Companies

Case Study 1 — Apple Inc. (AAPL)

Let us look at one of the most valuable companies on earth: Apple Inc. Their SEC filings provide some of the cleanest EPS data you will find anywhere. For the three months ending December 30, 2023, Apple reported:

Metric	Value
Net Income	$33.916 billion
Weighted Average Basic Shares	15,509,763 thousand
Effect of Dilutive Share-Based Awards	66,878 thousand
Weighted Average Diluted Shares	15,576,641 thousand
Basic EPS	$2.19
Diluted EPS	$2.18

(Source: Apple Inc. Form 10-Q filed with the SEC, Q1 FY2024)

The difference here — just $0.01 — looks tiny. But notice those 66,878 thousand dilutive shares. That is roughly 66.9 million additional shares that could come into existence through Apple’s employee stock compensation programmes. When you multiply that across a stock price of around $185 at that time, you are talking about potential dilution worth approximately $12.4 billion in market value.

A penny per share does not sound scary. Twelve billion dollars worth of potential dilution? Now you are paying attention. I thought that would do it.

For the nine months ending June 29, 2024, Apple reported a Basic EPS of $5.13 and a Diluted EPS of $5.11 — consistent with their pattern of modest but non-trivial dilution from stock-based compensation. This is exactly the kind of company with what accountants call a “complex capital structure.”

(Source: Apple Inc. Form 10-Q filed with the SEC, Q3 FY2024)

Case Study 2 — Microsoft’s Stock Buybacks and Dilution Management

Microsoft offers a brilliant case study in dilution management. According to research published at Kurums Financial Research, during the tech boom of 2021–2024, Microsoft’s stock regularly traded well above employee option exercise prices — meaning millions of options were deeply in the money. In 2023 alone, Microsoft repurchased $19 billion of its own shares, using the Treasury Stock Method strategically to keep diluted EPS within approximately 2% of basic EPS — a navigable and investor-friendly spread.

The lesson here is profound: management teams that respect shareholders manage dilution actively. They think about EPS on a per-share basis, not just in aggregate. They understand that every new share issued is, in effect, a tiny tax on every existing shareholder.

When Microsoft’s stock dipped in 2022 and some options went “underwater” (meaning the exercise price was higher than the market price), those options were automatically excluded from diluted EPS calculations — because they would be anti-dilutive. EPS actually ticked up slightly as a result. The system, flawed as it sometimes is, has built-in safeguards.

Case Study 3 — Intel and the Dot-Com Era Lesson

This one is a historical classic. Following the dot-com boom, Intel reported a difference between basic and diluted EPS of approximately $0.06 per share. Now, you are thinking — big deal, six cents. But Intel had over 6.5 billion shares outstanding at the time. That $0.06 dilution gap represented more than $390 million in value stripped from shareholders through dilution.

As markets collapsed in 2001, Intel’s stock options went underwater — their market price fell below exercise prices. The dilution effect evaporated temporarily. Basic and diluted EPS converged. The lesson? Dilution risk is not constant — it expands and contracts with the market. In bull markets, dilution bites harder. In bear markets, it relaxes. Understanding this cycle is edge — real, exploitable edge.

(Source: The Balance Money, “Basic vs. Diluted EPS,” citing Intel historical SEC filings)

Part Five: The Academic Evidence

What Peer-Reviewed Research Says

This is not just trader chatter — the academic finance community has studied EPS and dilution extensively. Here is what the research tells us:

Core, Guay, and Kothari (2001) published a landmark paper titled “The Economic Dilution of Employee Stock Options: Diluted EPS for Valuation and Financial Reporting” in which they analysed firm-wide data from 731 employee stock option plans. Their startling finding: economic dilution from stock options was, on average, 100% greater than the dilution reported using the FASB treasury stock method. In other words, the official diluted EPS figure still understates the true economic dilution of stock options.

They further demonstrated analytically that when firms have options outstanding, equity valuation models using reported per-share earnings produce upwardly biased estimates of market value.

The implication for investors is significant: the diluted EPS figure you see in the annual report may still be too optimistic. Real dilution — the economic dilution that Core et al. measured — can be double what GAAP reports. The market, being the efficient-ish beast that it is, partially prices this in. But not always. And not always fast enough.

📚 Reference: Core, J.E., Guay, W.R., and Kothari, S.P. (2001). The Economic Dilution of Employee Stock Options: Diluted EPS for Valuation and Financial Reporting. SSRN Working Paper. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=183068

FASB Statement of Financial Accounting Standards No. 128 (1997) established the legal and regulatory foundation for EPS reporting in the United States. It mandated the presentation of both basic and diluted EPS, standardised the treasury stock method for options, and the if-converted method for convertible securities. This standard remains the backbone of EPS disclosure in American financial reporting.

📚 Reference: Financial Accounting Standards Board. Summary of Statement No. 128 — Earnings Per Share. Available at: https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1218220128527

IAS 33 — Earnings Per Share (International Accounting Standards Board) is the international equivalent of SFAS 128. It governs EPS reporting for companies applying International Financial Reporting Standards (IFRS) — which includes most major global companies outside the United States. Indian companies, for instance, follow Indian Accounting Standard 33 (Ind AS 33), which mirrors IAS 33. The core requirements are consistent: both basic and diluted EPS must be disclosed on the face of the income statement.

📚 Reference: International Accounting Standards Board. IAS 33 — Earnings Per Share. IFRS Foundation. Available at: https://www.ifrs.org/issued-standards/list-of-standards/ias-33-earnings-per-share/

Corporate Finance Institute — EPS Educational Resource provides a critical insight that underscores the moral dimension of diluted EPS reporting: without mandatory disclosure of diluted EPS, management teams would have a powerful incentive to issue convertible securities to make profitability look better than it actually is. The diluted EPS requirement, in this sense, functions as an anti-manipulation tool baked into accounting standards.

📚 Reference: Corporate Finance Institute. Earnings Per Share (EPS) — Learn How to Calculate Basic and Diluted EPS. Available at: https://corporatefinanceinstitute.com/resources/valuation/what-is-earnings-per-share-eps/

Part Six: A Step-By-Step Worked Example

Building EPS From Scratch

Let us do this properly. Imagine a fictional company — we will call it TradersUnite Corp — with the following financials:

Income Statement Facts:

Net Income: £100,000,000
Preferred Dividends: £5,000,000
Shares Outstanding (January 1): 20,000,000
New Shares Issued (July 1): 6,000,000

Potentially Dilutive Securities:

Stock Options: 3,000,000 options, exercise price £10, current market price £25
Convertible Bonds: £20,000,000 face value, 5% interest, convertible into 2,000,000 shares

Step 1: Calculate Basic EPS

First, the weighted average shares:

Jan–Jun: 20 million × 6/12 = 10 million
Jul–Dec: 26 million × 6/12 = 13 million
Weighted average: 23 million shares

Basic EPS = (£100M − £5M) ÷ 23M = £95M ÷ 23M = £4.13 per share

Step 2: Apply the Treasury Stock Method for Options

Proceeds if all options exercised: 3,000,000 × £10 = £30,000,000
Shares bought back at market price: £30M ÷ £25 = 1,200,000 shares
Net dilutive shares from options: 3,000,000 − 1,200,000 = 1,800,000 shares

Step 3: Apply the If-Converted Method for Bonds

Assume the convertible bonds are converted at the start of the period:

Additional shares: 2,000,000
Add back after-tax interest saved: £20M × 5% × (1 − 0.25 tax rate) = £750,000

Step 4: Calculate Diluted EPS

Numerator: £95M + £750,000 = £95,750,000
Denominator: 23M + 1.8M + 2M = 26,800,000 shares
Diluted EPS = £95,750,000 ÷ 26,800,000 = £3.57 per share

That is a difference of £0.56 per share — a 13.6% dilution from basic to diluted EPS. For an investor valuing the company at 20x earnings, that shifts the target price from £82.60 to £71.40. A eleven-pound swing on every single share. Real money. Very real money.

If your financial model was built on basic EPS and you ignored dilution entirely? Your valuation is off by 13.6%. You just gave yourself a 13.6% head start to being wrong. And this is not a fake example — plenty of tech startups and high-growth companies have far worse dilution profiles than TradersUnite Corp.

Part Seven: Common Beginner Mistakes

The Five Things New Investors Get Wrong About EPS

Mistake 1: Using Basic EPS for Valuation

When you look up a company’s P/E ratio and it is based on basic EPS, you are potentially getting a flattering picture. For companies with significant stock options — especially tech companies, biotech firms, and startups — always check whether the P/E ratio uses basic or diluted EPS. If a stock screener says the P/E is 18x but that is based on basic EPS, and diluted EPS tells a different story — the true P/E might be 22x. That is the difference between “reasonably valued” and “moderately expensive.”

Mistake 2: Ignoring the Gap Between Basic and Diluted EPS

A large gap between basic and diluted EPS is a signal worth investigating. It means the company has lots of potentially dilutive securities floating around. This could mean heavy employee stock option programmes, convertible debt, or both. As Angel One’s financial education resource notes: when basic and diluted EPS have a large difference, it indicates significant dilution risk that warrants deeper analysis of compensation structures and financing arrangements.

📚 Reference: Angel One Knowledge Center. Basic EPS vs Diluted EPS. Available at: https://www.angelone.in/knowledge-center/online-share-trading/basic-eps-vs-diluted-eps

Mistake 3: Thinking Diluted EPS Can Exceed Basic EPS

It cannot. Diluted EPS is always equal to or lower than basic EPS — never higher. Why? Because dilution adds shares to the denominator, which reduces the per-share earnings figure. The only time basic and diluted EPS are equal is when a company has no potentially dilutive securities — a “simple capital structure.” Most large companies are not in this category. Stop assuming they are.

Mistake 4: Confusing EPS with Cash Flow

EPS is an accounting metric based on net income, which itself is subject to accrual accounting. A company can have positive EPS and still be burning cash at a terrifying rate. EPS does not measure cash flow. It does not measure whether the company can pay its debts. It measures profitability on an accrual basis. For cash flow analysis, you need to look at the Cash Flow Statement — the one most beginners ignore because it does not come with the drama of the income statement.

Mistake 5: Evaluating EPS in Isolation

EPS without context is like knowing someone’s salary without knowing their expenses, tax rate, or how many dependents they have. You need EPS in conjunction with the P/E ratio, the PEG ratio (P/E adjusted for growth), dividend yield, return on equity, and the trend of EPS over multiple quarters. A company showing £4.00 EPS this year when they showed £0.50 last year is a completely different beast from one that has hovered around £4.00 for a decade.

Part Eight: EPS in Practice — The Trader’s Perspective

How I Actually Use These Numbers

Let me tell you how this plays out in real life. When I am screening stocks, basic EPS is the headline — it grabs my attention. But the moment I get interested in a name, I pull up the diluted EPS and do a quick mental comparison. If the gap is less than 2%, I am not worried. If the gap is 5% to 10%, I am flagging it. If the gap is 15% or more, I am reading every footnote in that earnings report because something interesting is going on.

The footnotes — oh, the footnotes. Ninety percent of beginner investors never read the footnotes. The footnotes are where companies explain how they calculated diluted EPS, which securities they included or excluded, and — critically — which anti-dilutive securities they left out of the calculation entirely.

Anti-dilutive securities are those where including them would increase EPS rather than decrease it. Because that would be misleading, accounting standards require these to be excluded. But companies still have to disclose them in the footnotes. And those excluded anti-dilutive shares could become very dilutive if market conditions change.

I once watched a company trade at what looked like an attractive 15x earnings multiple based on basic EPS. The diluted EPS told a 19x story. The footnotes revealed another 50 million anti-dilutive shares waiting in the wings. Market conditions shifted, those shares turned dilutive, and suddenly that “attractive” 15x became a “run for the hills” 24x. The stock got absolutely smoked.

Do I feel bad about those who lost money? A little. I told my trading group. They listened. That is why we do the work.

The Time EPS Saved My Entire Quarter

Let me tell you about the day I nearly bought into a company that looked, on every surface metric, like a steal. The basic EPS had grown 40% year-over-year. Revenue was climbing. The management team was on every business podcast talking about disruption, innovation, and the future. They had a slide deck so polished you could see your reflection in it — which, by the way, is always a mild red flag from a trader’s perspective.

I did what I always do. I pulled the diluted EPS. It had grown only 11% year-over-year. I checked the share count. It had increased by 28% over two years. The company was issuing shares almost as fast as it was growing revenue — diluting existing shareholders while dressing the window with impressive-looking top-line growth numbers.

The gap between 40% basic EPS growth and 11% diluted EPS growth was the size of a canyon. A canyon filled with stock options, RSUs, and a management team whose compensation was apparently structured to make the company look good on the metrics most people check — not the ones you should check. The difference between a great business and a great-looking business is often hiding in the dilution disclosure.

I passed on that stock. Three quarters later, the share issuance continued, diluted EPS growth turned negative, and the company’s P/E ratio — now calculated on genuinely terrible diluted earnings — was somewhere in “are you joking” territory. The stock dropped 38% in four months.

I did not celebrate. I just quietly updated my checklist and moved on. That is what traders do. We learn. We adjust. We make the same mistakes once, not twice. Mostly.

Part Nine: EPS Across Different Industries

Why Context Is King

EPS and dilution profiles vary dramatically across sectors, and understanding these differences is critical for cross-sector analysis.

Technology Sector

Tech companies routinely have the widest gaps between basic and diluted EPS. This is because stock-based compensation is the primary currency for attracting talent in Silicon Valley and beyond. Engineers at top tech firms receive options and restricted stock units (RSUs) worth tens of thousands — sometimes hundreds of thousands — of pounds annually. These all become potential dilution.

For a company like Meta, Google (Alphabet), or any fast-growing tech unicorn, diluted EPS can run 5% to 20% below basic EPS. Investors in these companies have essentially accepted dilution as a cost of doing business — the trade-off for retaining world-class talent.

Banking and Financial Services

Banks tend to have smaller gaps between basic and diluted EPS. Their compensation structures often rely less on equity and more on cash bonuses. Regulatory capital requirements also limit the degree to which banks can have complex dilutive capital structures. That said, banks often have their own complexity through hybrid capital instruments and preference shares.

Utilities and Real Estate Investment Trusts (REITs)

These sectors typically have very straightforward capital structures. Basic and diluted EPS often converge closely. However, REITs are an interesting case because their primary valuation metric is not EPS at all — it is Funds from Operations (FFO) — because real estate depreciation distorts net income significantly.

Biotech and Pharmaceutical

Biotech companies in early stages often report negative EPS — they are spending heavily on research and development before any products generate revenue. In these cases, diluted EPS equals basic EPS, because anti-dilutive shares (those that would improve the loss per share figure) are excluded. The dilution risk, however, is enormous — these companies frequently issue new shares to fund operations. Watch the share count trend carefully.

Part Ten: EPS and Stock Buybacks — The Plot Twist

How Companies Manipulate EPS (Legally)

Here is something that will either impress you or bother you, depending on your temperament: companies can engineer EPS growth without actually becoming more profitable. How? Share buybacks.

If a company buys back its own shares on the open market, the weighted average share count decreases. A smaller denominator — with the same numerator — produces a higher EPS. Mechanically. Automatically. Without a single product being sold, a single new customer being won, or a single dollar of genuine additional value being created.

This is legal. This is common. This is used extensively by mature, cash-rich companies — particularly in the United States — as a way to return capital to shareholders while simultaneously boosting EPS-based performance metrics that trigger executive bonuses.

Is it inherently bad? Not necessarily. If a company has genuinely excess cash with no better use and trades at a fair or cheap valuation, buybacks can be excellent capital allocation. But if management is buying back shares instead of investing in growth, or worse — borrowing money to buy back shares — that is a different story entirely. You are papering over mediocre operational performance with financial engineering.

As a trader, I watch the share count trend across multiple years. A steadily declining share count can mean a disciplined, shareholder-friendly management team. Or it can mean a management team more focused on hitting EPS targets for their bonuses than building a genuinely great business. The income statement alone cannot tell you which one you are dealing with. You have to dig.

Part Eleven: Bringing It All Together

Your EPS Checklist for Every Stock Analysis

Before we close, here is a practical checklist — a trader’s field guide to EPS analysis that you can apply immediately:

When you look at any company’s EPS:

Always find both figures. Find basic EPS and diluted EPS. Do not stop at whichever one the headline shows you.
Calculate the dilution gap. Divide diluted EPS by basic EPS. Subtract from 1 and multiply by 100 to get the dilution percentage. A gap over 10% demands explanation.
Identify the dilutive securities. Read the EPS note in the financial statements. What is causing the dilution — stock options, RSUs, convertible debt? Understanding the source tells you about management’s incentive structure and capital strategy.
Read the anti-dilutive footnote. How many shares were excluded as anti-dilutive? These are potential future dilution hidden off the main calculation.
Check the share count trend. Is the total share count rising, falling, or stable over the past five years? Rising share count means ongoing dilution to shareholders. Falling means buybacks. Either can be good or bad depending on context.
Use diluted EPS — not basic — for all valuation work. P/E ratio? Use diluted EPS. PEG ratio? Use diluted EPS. Intrinsic value models? Diluted EPS. Always. Every time. Without exception.
Compare diluted EPS trend. Is diluted EPS growing, shrinking, or volatile? Growth in diluted EPS — especially when accompanied by a stable or declining share count — is generally a very positive signal.
Do not evaluate EPS in isolation. Pair it with cash flow from operations, return on equity, and revenue growth. EPS is one instrument in the orchestra — not the whole symphony.

Conclusion: The Metric That Tells the Truth

EPS vs Diluted EPS is not merely an accounting distinction. It is the difference between the story a company tells about itself and the fuller, more honest story that accounting standards require it to disclose. Basic EPS is the highlight reel. Diluted EPS is the full match footage.

The academic research is clear: diluted EPS, as mandated by SFAS 128 and IAS 33, was introduced precisely because without it, companies would have every incentive to obscure the true dilutive cost of their compensation and capital structures. And even with diluted EPS, research by Core, Guay, and Kothari demonstrates that economic dilution from stock options is often twice what the official figure shows.

The companies that respect their shareholders report both figures clearly, manage dilution actively, and explain their equity compensation philosophy in plain language. The companies that do not? They let you figure it out for yourself — buried in footnote 22 of a 280-page annual report in 9-point font.

You now have the tools to figure it out. Use them. Every time. Because the market will not wait for you to catch up, and the footnotes are not going to read themselves.

Now go and do your homework. The market opens Monday. And unlike Gerald in accounting with his stock options, you are not getting any freebies.

References

Core, J.E., Guay, W.R., and Kothari, S.P. (2001). The Economic Dilution of Employee Stock Options: Diluted EPS for Valuation and Financial Reporting. SSRN Electronic Journal. DOI: 10.2139/ssrn.183068. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=183068
Financial Accounting Standards Board (FASB). (1997). Statement of Financial Accounting Standards No. 128 — Earnings Per Share. Available at: https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1218220128527
International Accounting Standards Board (IASB). IAS 33 — Earnings Per Share. IFRS Foundation. Available at: https://www.ifrs.org/issued-standards/list-of-standards/ias-33-earnings-per-share/
Apple Inc. (2024). Form 10-Q — Quarterly Report for the Period Ending December 30, 2023. Filed with the U.S. Securities and Exchange Commission. Available at: https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000320193&type=10-Q
Apple Inc. (2024). Form 10-Q — Quarterly Report for the Period Ending June 29, 2024. Filed with the U.S. Securities and Exchange Commission. Available at: https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000320193&type=10-Q
Corporate Finance Institute. (2024). Earnings Per Share (EPS) — Learn How to Calculate Basic and Diluted EPS. Available at: https://corporatefinanceinstitute.com/resources/valuation/what-is-earnings-per-share-eps/
Angel One Knowledge Center. (2024). Basic EPS vs Diluted EPS. Available at: https://www.angelone.in/knowledge-center/online-share-trading/basic-eps-vs-diluted-eps
Kurums Financial Research. (2025). Mastering Diluted EPS with the Treasury Stock Method. Available at: https://kurums.com/treasury-stock-method-diluted-eps/
AnalystPrep. (2023). Basic vs. Diluted EPS — CFA Level 1 Study Notes. Available at: https://analystprep.com/cfa-level-1-exam/financial-reporting-and-analysis/basic-and-diluted-eps/
The Balance Money. (2020). Basic vs. Diluted EPS. Available at: https://www.thebalancemoney.com/basic-vs-diluted-eps-357566

This article is for educational purposes only and does not constitute financial advice. Always consult a qualified financial adviser before making investment decisions. Past performance is not indicative of future results.

Further Reading:

Market Investigation