Free Download: Diluted Share Calculator Template

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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.

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.