Basic vs Diluted Shares Outstanding
When finding unlevered FCFs in a DCF, do you divide the equity value by the basic or diluted shares outstanding? Also, could anyone explain the difference between the two? In the operating model, would you use basic or diluted SHOUT for the equity schedule (or common stock schedule) for the average common shares outstanding part?
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The diluted shares outstanding can be thought of as a hypothetical number of shares because it represents the total number of shares outstanding if all convertible securities (options, warrants, convertible debt, etc.) are exercised.
Latest diluted # in the 10Qs or 10Ks
Can anyone clarify if I'm supposed to be using diluted or basic? I'm getting mixed answers here lol
Who is giving you mixed answers? You always use diluted shares outstanding
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