Market Cap & Enterprise Value

• Market Cap = Price × Diluted Shares
• Enterprise Value = Market Cap + Debt + Minority Interest – Cash – Non-Operating Assets

Where to get diluted shares? Most investors look at the "Weighted Average Diluted Shares" on the Income Statement and call it a day. That is a mistake. That number is a smoothed-out, backward-looking accounting fiction that often lags reality by 3-4 months. To get more recent and relevant to future returns number, we need to look at the bottom of a cover page of 10-Q or 10-K. Look for "Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date".