I am starting to do my own research into stocks and am finding there are two lines represented for net income on company financials. Basic and diluted.
I am not sure which one would be the most appropriate to use for analysis?
The stock in question is WETF.
Always diluted, no matter which stock.
If I could ask a follow-up. What if you can find only one number for EPS and cannot determine if it is GAAP or non-GAAP? Thanks.
If there’s only one number it’s almost surely GAAP. If I have a choice, I almost always use the non-GAAP or adjusted. (There’s a full discussion of that in a separate small chapter in the Knowledgebase.)
Saul