Treasury Stock Method for Diluted Shares Outstanding

Hi,

I've run into a technical question someone might be able to answer: I'm currently completing online training and I've seen two conflicting methods to calculate Diluted Shares Outstanding. In a modeling exercise, diluted shares outstanding were simply being calculated by adding the number of in the money options to the number of shares outstanding.

However, in a public comps, the instructor used the Treasury Stock Method (assumes options proceeds are used to repurchase stock) to calculate Market  value of equity.

Is there a reason why the Treasury Stock Method is not being applied in a modeling forecast?

1 Comments
 

Blanditiis modi maiores illo harum perferendis consequatur a. Enim placeat ea ipsam mollitia quam ut debitis. Tempora quia maxime accusamus eveniet. Eligendi a fuga esse alias cupiditate sint porro.

Sed ab adipisci quo officia vitae eum. Quia temporibus voluptas esse sit ad fugiat eum. Reiciendis minima omnis velit rem sed. Est aut a ea vel omnis aut accusantium.

Reiciendis reiciendis magni sapiente cupiditate ut. Enim quibusdam labore ab nulla consequuntur quo voluptatem.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

November 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • JPMorgan 01 98.4%
  • Guggenheim Partners 02 97.9%
  • Morgan Stanley 06 97.4%

Overall Employee Satisfaction

November 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 99.0%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 13 97.4%

Professional Growth Opportunities

November 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

November 2026 Investment Banking

  • Vice President (16) $429
  • Associates (57) $264
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (29) $183
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (77) $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
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
GameTheory's picture
GameTheory
98.9
7
Betsy Massar's picture
Betsy Massar
98.9
8
DrApeman's picture
DrApeman
98.9
9
CompBanker's picture
CompBanker
98.9
10
Linda Abraham's picture
Linda Abraham
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...”