Download WSO's free Dilution Calculation model template below! This template allows you to calculate dilution impact on a stock. The template is plug-and-play, and you can enter your own numbers or formulas to auto-populate output numbers. The template also includes other tabs for other elements of a financial model. You can find the opposite Accretion Calculation model here.
According to the WSO Dictionary,
"Dilution is a financial concept to represent a decrease in value and can apply to either a transaction or a bond. For both, it refers to the fact that value is lost purely on paper.
In a transaction, dilution is the decrease in Earnings Per Share after a merger or acquisition has taken place. If the Earnings Per Share decreases, then the transaction is usually seen as being a bad one."
A screenshot below shows a sneak peak of the template.