Diluted EPS

A basic EPS is calculated using the weighted average number of shares in issue during the period. A diluted EPS is calculated using all shares in issue and those due to be issued (e.g. under share option schemes).

A fully diluted EPS is calculated using all shares issued, due to be issued and which could be issued if all existing warrants are exercised, convertible bonds are converted to equity etc. This tends to be less commonly used because of the complexity and uncertainties involved.