Common Mistakes in Calculating Diluted Shares Outstanding
Interactive

Common Mistakes in Calculating Diluted Shares Outstanding

Wall Street Prep
Updated Feb 26, 2019
Convertible Debt. Convertible Preferred Shares. Warrants. Stock Options. Restricted Stock. In the context of valuation, it's always difficult to accurately quantify all potential claims against the common equity pot. This teach-in will provide a solid foundation for all grey areas in calculating diluted shares outstanding, both from stand-alone and M&A valuation perspectives. We will show you: how to calculate dilution from the exercise of stock options and/or warrants using the Treasury Stock Method; best practices in treating convertible securities and the respective implications on valuation; how to best deal with restricted stock given the context (standalone valuation vs. M&A context).