How would I calculate this?
This should work;
100*((SharesFDTTM/SharesFDPTM)-1)
Walter
How does that compare to 100*( EqPurch(0,TTM)-EqIssued(0,TTM)))/mktcap or (( EqPurch(0,ann)-EqIssued(0,ann)))/mktcap?
It depends on what you really want to do.
For change in shares outstanding, I would use SharesFD.
If I wanted to understand a change in shareholder equity, I would decompose that term into its constituents (net earning - dividends +/− gain/loss from changes to the number of shares outstanding. I would use ChangeEq, ChangeEq and EqIssued for that calculation.
Walter
Caley,
What is your ultimate goal? A filter or a ranking node?
I’d just use Shares.
Shares is trying very hard to get a number for shares outstanding regardless of the classification of that figure. The order according to the file that I’m looking at is fully diluted, last quarter’s fully diluted, most recent, basic, last quarter’s most recent. (I seem to recall a conversation where we were considering putting the shares from the price series, used to calculate market cap, in there, but I don’t see it in the file. It could be that the file is old, or we could have decided against it.)
Given how hard Shares is looking for a number, I use it generally instead of the more specific versions. And all of those versions are also looking for the best number with the exception of SharesBasic. We figure that if you’re asking for basic shares that you want basic shares. For some reason.
Anyway, in my experience, the reason for this sort of request is that you’re looking to model buybacks. We don’t do that very well because we don’t have that information in any of our data. That said
Shares(0,QTR)<Shares(4,QTR)is actually pretty good. The general idea is that the number of shares is going to trend upwards thanks to option redemption and executive compensation. If it is going the other way at all, then there’s a pretty good chance that there was a buyback. You can also use it as a ratio in a ranking system.
Hi Paul,
I used SharesFD since it seems like a widely used function. From the doc; “SharesFD is the number of fully diluted shares, and, in the interests of fiscal conservatism, is the figure that Portfolio123 uses for most per-share valuations on the site.”
Thanks for the feedback.
Walter
Yes, more specifically buyback yield, so I could use 100*(1-Shares(0,QTR)/Shares(4,QTR)) to calculate the amount of share repurchases by a firm over the past 12 months as a % change in shares outstanding. Does that sound correct?
I’d be curious how that performance compares to the formula I just posted.
Do you have access to the screener?
caley89: Technically speaking, the percentage change also reflects all non-buyback activity. Off the top of my head, M&A activity, option issuance and redemption and executive compensation would all affect that percentage.
But it’s the best that we can do, so yes, that’s correct.
wwasilev: SharesFD is fine in this case. In fact, nearly any of the shares functions should work fine because of the above points. We’re only ever really estimating this figure. That’s why I favor Shares: If we’re only getting an estimate, we might as well make life easier on ourselves.
Yes but I don’t have the ability to run it back to 1999.