REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
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Notional
dilution
In some cases, the future conversion
of other classes of share capital or debt will cause a potential dilution of earnings
per ordinary share, or of net tangible asset value per share. When this produces
a measurable difference, Company REFS shows historic earnings per share
(EPS) and NTAVPS on a fully-diluted basis.
Any statistic or calculation
which incorporates, or invites comparison with, historic EPS or NTAVps also presented
on a fully-diluted basis. Those statistics affected include:
historic and forecast EPS
historic cash flow per share
prospective price-earnings ratio (PER)
price-earnings growth factor (PEG)
historic and forecast EPS growth
historic net tangible asset value per share (NTAVps)
Calculations based on full
dilution notionally assume that any future share issues, which could take place
upon conversion of other classes of debt or share capital, have already occurred.
This can involve adjusting earnings and assets as well as increasing the actual
number of shares. Adjustments to earnings can reflect, for example, a lower dividend
or interest payout, as with convertible fixed dividend securities or debt, or
a notional increase in earnings capacity through a larger capital base, as with
options or warrants to subscribe for ordinary shares.
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