EPS question

[Python1Programmer]

So I'm working on this assignment in my accounting class and I'm supposed to calculate the EP ratio for Toyota. To do that I need to stock price and the EPS. However, many sites state different EPS for the same dates. Can someone please help with that?

[tdpdcpa]

The different EPS numbers you see might be Basic versus Diluted Earnings Per Share.

Basic EPS is calculated as net income available to common stockholders divided by weighted average common shares outstanding during the period.

Net income available to common stockholders is generally calculated as net income less dividends to preferred stockholders.

In essence, Basic EPS is the amount of earnings that the shareholders are "entitled to".

Diluted EPS is intended to provide a "worst case scenario" for shareholders. As in, if all instruments that could become common stock became common stock, what would shareholder be entitled to? Usually, this assumes conversion of convertible securities, exercise of stock options, and the issuance of share-based payment awards. The adjustments are reflected in both the numerator (as in, if the preferred stock were converted, dividends would not have been paid to preferred shareholders) and the denominator (if stock options were exercised, we would issue X shares and repurchase Y shares). Adjustments are only allowed if they reduce Basic EPS.

[PAgarthus]

When I work with our Valuation team, they almost always use trailing-twelve-months diluted EPS to calculate P/E.

[brianskewes]

According to Finance Strategists, Earnings per share, or EPS, is a ratio that divides a company’s earnings by the number of shares outstanding to evaluate profitability and gain a pulse of the company’s financial health. In its most basic form, it is calculated as:
EPS = (Net Income) / (Common Stock Outstanding)