# Treasury Stock Method Calculator

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## Treasury Stock Method Calculator

This treasury stock method calculator helps you find the additional shares outstanding using the formula:

Additional Shares Outstanding = Additional Shares (1 – Strike Price / Average Price)

Here is a screenshot of the treasury stock method calculator:

The treasury stock method is a way for companies to compute the number of additional shares that can possibly be created by un-exercised, in-the-money warrants and stock options. These new additional shares can then be used in calculating the company’s diluted earnings per share (EPS). The treasury stock method implicitly assumes that the proceeds the company receives from in-the-money option exercises are then used to repurchase common shares in the market. Repurchasing those shares turns them into treasury stock, hence the name.

### Treasury Stock Method Formula:

Additional Shares Outstanding = Shares from Exercise – Repurchased Shares

Additional Shares Outstanding = n – (n x K / P)

Additional Shares Outstanding = n (1 – K/P)

Where:

N = Shares from exercise

K = Strike price

P = Average share price for the period

### More Free Templates

For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentations, and Word document templates.

CFI is a global provider of financial modeling courses and of the FMVA Certification. CFI’s mission is to help all professionals improve their technical skills. If you are a student or looking for a career change, the CFI website has many free resources to help you jumpstart your Career in Finance. If you are seeking to improve your technical skills, check out some of our most popular courses. Below are some additional resources for you to further explore:

## The Financial Modeling Certification

### Analyst Certification FMVA® Program

CFI is a global provider of financial modeling courses and of the FMVA Certification. CFI’s mission is to help all professionals improve their technical skills. If you are a student or looking for a career change, the CFI website has many free resources to help you jumpstart your Career in Finance. If you are seeking to improve your technical skills, check out some of our most popular courses. Below are some additional resources for you to further explore:

## The Financial Modeling Certification

Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.

A well rounded financial analyst possesses all of the above skills!

CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.

In order to become a great financial analyst, here are some more questions and answers for you to discover:

### Excel Tutorial

CFI is a global provider of financial modeling courses and of the FMVA Certification. CFI’s mission is to help all professionals improve their technical skills. If you are a student or looking for a career change, the CFI website has many free resources to help you jumpstart your Career in Finance. If you are seeking to improve your technical skills, check out some of our most popular courses. Below are some additional resources for you to further explore:

## The Financial Modeling Certification

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