What is the outstanding shares formula?

The outstanding shares formula is represented as issued shares minus shares held in the company’s treasury or treasury stock. Through this formula, one can determine the outstanding shares of a company. What are outstanding shares?

How do analysts use the number of outstanding shares?

Analysts use the number of outstanding shares in calculating key metrics such as a company’s market capitalization, earnings per share (EPS), and cash flow per share (CFPS). The number of a company’s shares outstanding is not static, it is bound to fluctuate over time.

How do you calculate the number of shares repurchased?

If the line exists, there should be a statement within the line item description stating the number of shares repurchased. Retain this number. Add together the numbers of preferred and common shares outstanding, and subtract the number of treasury shares. The result is the total number of shares outstanding.

How do you calculate treasury stock?

Retain this number. Add together the numbers of preferred and common shares outstanding, and subtract the number of treasury shares. The result is the total number of shares outstanding. If there is a difference between the number of shares issued and outstanding, the difference is treasury stock.