Diluted Shares Outstanding

Basic shares plus the shares that in-the-money options, restricted stock, convertibles and warrants would create. Usually computed with the treasury stock method, which assumes option proceeds buy back shares at the market price. Use diluted, not basic, for market capitalisation: the claims exist whether or not they have been exercised yet.

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Where Diluted Shares Outstanding comes up

Enterprise Value vs. Equity Value, Once and For AllThe most-asked valuation concept in finance interviews, and the bridge, pairing rules, and follow-up traps that come with it.Read the guide — 7 min

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