Free Download: Diluted Share Calculator Template

Description
This is a useful template to calculate diluted shares outstanding based on the impact of potentially dilutive securities. A fully diluted share count is implicitly used by the market when valuing a company’s stock. Basic shares outstanding represent the number of common shares that are outstanding today (or as of the reporting date). Fully diluted shares equals basic shares plus the potentially dilutive effect from any outstanding stock options, warrants, convertible preferred stock or convertible debt.

Examples of potentially dilutive securities include stock options, warrants and convertible debt. When determining the number of fully dilutive shares outstanding, “in-the-money” options, warrants and other convertible securities must be reflected. “In-the-money” items have intrinsic value. Or simply put, the strike price or conversion price is below the underlying share price.

The number of additional shares from “in-the-money” stock options and warrants is determined using the Treasury Stock Method while the If-Converted Method is used to determine additional shares outstanding from convertible debt.

This Excel template contains clearly-labeled input cells which allows the user to easily see what key assumptions are required. The template requires the user to enter the current share price as well as a details around potentially dilutive securities, including amounts outstanding and strike/conversion prices.