Which EPS to use | The Investment Quadrant by The Fifth Person

Questions › Category: Valuation Quadrant › Which EPS to use

Bryan Tan asked 5 months ago

Since there are two EPS in the excel where one is att. to shareholders and another exc. exceptional items, can I just check which EPS is normally used for the calculation.

1 Answers

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Victor Chng answered 5 months ago

Hi Bryan,

Use the EPS that exclude exceptional items

Adeline Ling replied 1 month ago

When plotting the PE chart, when using the previous financial year’s EPS, can I use the Net income per share in the income statement?

If yes, may I know if I should use the net income per share for basic or diluted?

Or am I supposed to use the EPS as per the excel I work out using the template?

Thank you.

Victor Chng replied 1 month ago

Hi Adeline,

The EPS inside the income statement may not exclude exception items. My suggestion is to do the calculation yourself inside the financial template.

When using EPS, use the diluted figure as it accounts future dilutions.

The number of shares input into the excel template should be diluted outstanding shares.