If a business has $10 in BVPS at Year 0, and $10 in BVPS in Year 10, and $10 in BVPS in Year 100… isn’t that share really worth $0 in Year 0?
If a company issues stock to investors (instead of to its employees), and pays its employees with the cash from that issuance (instead of with stock-based comp), isn’t there both an expense and dilution? Is that double-counting?
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I think that it is double-counting. He says as much in the post I believe: "In short, not only do I not have a problem excluding stock comp so long as the cost is accounted for in the share count, I think that including it while simultaneously blowing out shares is indeed double counting."
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