Fully Diluted Market Cap Calculator
Calculate the fully diluted market capitalization including all outstanding shares, options, and convertible securities.
Asset Information
Market price of one share or token
Currently issued and circulating shares or tokens
Stock options, warrants, and convertible securities that could be issued
Fully Diluted Market Cap
Enter asset details to calculate the fully diluted market capitalization
What Is Fully Diluted Market Cap?
The fully diluted market cap represents the total theoretical value of a company or crypto project if every possible share or token were issued and outstanding. This includes not just the shares or tokens that exist today, but also all the options, warrants, and convertible securities that could potentially be converted into shares or tokens in the future.
Think of it as the "worst-case" valuation from an existing shareholder's perspective - it shows what the company would be worth if all those dilutive securities were exercised. For investors, this number provides a more complete picture of the true valuation and helps assess how much dilution could affect their ownership percentage.
Whether you're looking at traditional stocks or cryptocurrency tokens, understanding fully diluted market cap is crucial for making informed investment decisions.
Key Components of Fully Diluted Market Cap
Understanding what goes into the fully diluted calculation is key to interpreting the results:
- Outstanding Shares/Tokens: These are already issued and trading in the market. For stocks, this includes shares held by investors and company insiders.
- Stock Options: Compensation given to employees and executives that can be converted to shares at a predetermined price.
- Warrants: Similar to options but often issued to investors or partners, giving the right to buy shares at a fixed price.
- Convertible Securities: Bonds or preferred shares that can be converted to common shares under certain conditions.
- Reserved Tokens: In crypto projects, tokens set aside for future distribution, team vesting, or community rewards.
Each of these components represents potential future shares or tokens that could be added to the total supply, thus diluting the value of existing shares or tokens.
The fully diluted market cap assumes all of these dilutive securities are exercised or converted, giving you the maximum possible valuation scenario.
Fully Diluted Market Cap Formula
Market Capitalization Calculation
Fully Diluted Market Cap = Total Shares × Current Price per Share
Total Shares = Outstanding + Options + Warrants + Convertibles
This formula calculates the maximum theoretical value:
- • Outstanding Shares: Currently issued and circulating
- • Options/Warrants: Potential future shares from employee compensation
- • Convertibles: Securities that can be converted to shares
- • Current Price: Market price per share or token
Example: Company with 1M outstanding shares, 200K options, at $50/share
Total Shares = 1,000,000 + 200,000 = 1,200,000 shares
Fully Diluted Market Cap = 1,200,000 × $50 = $60,000,000
Note: This represents the theoretical maximum dilution. In reality, not all options may be exercised, especially if the market price is below the exercise price.
Dilution Impact Examples
How Options and Convertibles Affect Market Cap
| Price ($) | Outstanding | Options | Total Diluted | Market Cap ($) | Dilution Impact |
|---|---|---|---|---|---|
| $50 | 1,000,000 | 200,000 | 1,200,000 | $60,000,000 | 20% Increase |
| $10 | 5,000,000 | 1,000,000 | 6,000,000 | $60,000,000 | 20% Increase |
| $100 | 500,000 | 50,000 | 550,000 | $55,000,000 | 10% Increase |
The dilution impact shows how much the total market cap increases when all potential shares are included. This is the maximum theoretical dilution an investor might experience.
Fully Diluted Market Cap FAQs
How do stock options affect market cap?
Stock options give employees the right to buy shares at a fixed price. When exercised, they create new shares that dilute existing shareholders' ownership and increase the total market cap.
Does this reflect actual cash value?
No, this is a theoretical valuation based on current market price. It shows what the company would be worth if all dilutive securities were exercised, but doesn't guarantee that will happen.
Can this be applied to crypto tokens?
Absolutely. Many crypto projects have token vesting schedules, team allocations, and community rewards that aren't circulating yet. The fully diluted market cap shows the total project value including all potential tokens.
Why is dilution important for investors?
Dilution reduces your percentage ownership in the company. If you own 1% before dilution but the share count doubles, you might own only 0.5% after dilution, even though the company's value increased.