You mean the DPS that shows on the charavter screen?
I think that is not entirely accurate because I did some changes and went down like 100k but I deal more damage.
Actually, I was explaining to him how to find your "real" damage.
When looking at your Inventory or Skills, hit Square to bring up your Character Details. The last entry in the first section is Damage. This is what people normally refer to as "sheet damage" or "sheet DPS," and is listed under your character picture. Whenever you do anything listed as "X% weapon damage," this value is used directly, more or less.
However, if you scroll further down, close to the end of the Offense section, you should also see something called Fire Damage Increase (or whatever element you're rocking). This will tell you your total percentage bonus for fire skills, but if you highlight it, in the description will show you your Fire Damage, which is your Damage from above, multiplied by your FDI. So if your Damage is 500K, and you have 50% Fire Damage Increase, then your Fire Damage will be listed here as 750,000. Any skill or effect that says, "X% weapon damage as fire" will be based on your Fire Damage instead of your Damage.
So when people say, "Your Damage is a lie," that's not technically accurate, and it's certainly not useful. Whatever it says for your Damage
is perfectly accurate, but
you're probably actually interested in your Fire/Cold/Holy/whatever Damage, which is listed in your Character Details. Both numbers are accurate, but the second one is the one that is most relevant for elemental users, and no one seems to know it's listed there.