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How to Calculate a Company's Weighted Average Number of Outstanding Shares

By Motley Fool Staff – Updated Apr 30, 2025 at 8:18PM

Key Points

  • This calculation gives a more accurate picture of a company's earnings.
  • Weighted averages consider the duration each share count is valid to accurately reflect earnings per share.
  • A weighted average better represents a company's per-share earnings over time, adjusting for share count changes.
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