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    Value Investing Why do we use Fully Diluted Shares for Equity Value in Enterprise Value Calculation?

    Value Investing Why do we use Fully Diluted Shares for Equity Value in Enterprise Value Calculation?


    Why do we use Fully Diluted Shares for Equity Value in Enterprise Value Calculation?

    Posted: 03 Nov 2019 01:36 PM PST

    Enterprise value has many parts, one of which is equity value. I've read that this equity value should be the fully diluted equity value. So if there is a convertible security (say like a convertible note), we would convert that to common shares when calculating equity value.

    Why is that?

    submitted by /u/realestcanadian
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