Diluted Earnings Per Share. Diluted EPS is the EPS after assuming that all convertible securities have already converted into equity. Convertible securities such as employee stock option, convertible preference share, convertible debentures, etc.It is the

Earnings per share ratio (EPS ratio) is computed by the following formula: The numerator is the net income available for common stockholders (i.e., net income less preferred dividend) and the denominator is the average number of shares of common stock out