Fully Diluted Shares from a 10-Q

I'm currently working on an input page for company in the first comp analysis I have ever done and I am having trouble calculating fully diluted shares outstanding.

Looking at their most recent 10-q, I am wondering where I would find the amounts for the in-the-money options and warrants.
Would I take this amount from the Stock Options exercised or from the Common Stock Repurchase Program section that outlines the average price paid and amount of shares repurchased?

Thank you in advance for any help.

 

Usually, in 10-Qs and 10-Ks, somewhere in your Statement of comprehensive income or Consolidated Statement of Income, you have the EPS calculation (which is done on a diluted basis) and there should be a line similar to "number of shares used for the diluted EPS". Don't know if you can use that or you've actually been aksed to re-calculate the FDSO yourself

 
Best Response

If you need to calc yourself there are four things you need: 1) basic shares outstanding from the cover of the Q 2) restricted shares (sometimes its in there as "performance shares" or restricted stock units or RSUs) as well - this will be in the footnotes 3) options outstanding (should be in a table in the footnotes - be sure to use the outstanding number not the vested number) and weighted average strike price 4) warrants outstanding (should be in a table in the footnotes) and weighted average strike price.

In order to calc diluted shares you would add restricted shares to the basic shares number, and then use Treasury stock method to get the number of equivalent shares you could repurchase based on in the money options / warrants

http://www.investopedia.com/terms/t/treasurystockmethod.asp

So your final calc will be basic shares + restricted stock units + assumed repurchased shares based on ITM option exercise + assumed repurchased shares based on ITM warrant exercise

You can also use the diluted number they used in their EPS calc, but the above method is a bit more CYA and at least in my group what someone would be expecting

 

Your issue may be that sometimes 10-q's are a little sparse on useful info, especially with regard to options, warrants, and restricted stock. In that case, you'll have to use the 10-k, which will be more dated, but at least it will have the data you need.

 

Quisquam aliquid dolorem sed quo veritatis. Tempore in fugiat dolores autem. Et inventore sit in ut est et.

Harum qui voluptas aut ipsam quos minima nemo. Impedit voluptas sequi ut repudiandae asperiores itaque. Consectetur non fugit est aut vel praesentium non. Nihil quaerat ut iusto tenetur qui ex assumenda saepe. Modi provident est illum molestias et est.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (85) $262
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (65) $168
  • 1st Year Analyst (198) $159
  • Intern/Summer Analyst (143) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
dosk17's picture
dosk17
98.9
5
GameTheory's picture
GameTheory
98.9
6
Secyh62's picture
Secyh62
98.9
7
CompBanker's picture
CompBanker
98.9
8
kanon's picture
kanon
98.9
9
pudding's picture
pudding
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”