I know diluted EPS is net income - preferred dividends over avg shares outstanding + diluted, but AI and google are giving me mixed answers on whether to use net income or net income attr. to parent company
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Based on the most helpful WSO content, for calculating EPS (Earnings Per Share), you should use Net Income attributable to the parent company. This is because EPS is meant to reflect the earnings available to common shareholders, and Net Income attributable to the parent excludes portions of income that belong to non-controlling interests.
For diluted EPS, the formula remains:
$$\text{Diluted EPS} = \frac{\text{Net Income attributable to parent} - \text{Preferred Dividends}}{\text{Weighted Average Shares Outstanding (diluted)}}$$
This ensures that the calculation aligns with the earnings available to common shareholders after accounting for any preferred dividends and potential dilution from convertible securities.
Sources: DCF Modeling Course ~ Pre-training text.pdf, Week 3 of IBD Internship: The Pitch, M&A Interview Questions - Beginner to Advanced Questions, EBITDA vs. Operating Cash Flow vs. Free Cash Flow
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