I belive that EPS and dilluted EPS should be used together as they measure different (but both very important) details about profitabillity. EPS is the most generally used because it's quick easy to understand and gives a basic benchmark to compare companies, and good for understanding trends especially for cyclical markets. While dilluted EPS is better for comparing companies that are in different markets, for risk assessnent and also for analysing the cost of equity compensations
Wow!!! What an excellent way of explaining it.
Would you mind sharing what note-taking application you use? I love your content and have always wondered.
What one is more appropriate measure for investment decision ?
I belive that EPS and dilluted EPS should be used together as they measure different (but both very important) details about profitabillity. EPS is the most generally used because it's quick easy to understand and gives a basic benchmark to compare companies, and good for understanding trends especially for cyclical markets. While dilluted EPS is better for comparing companies that are in different markets, for risk assessnent and also for analysing the cost of equity compensations
Pretty easy to grasp. What’s the hard stuff? Auditing & Tax Codes?