What is SBC/Share?
SBC per Share divides total stock-based compensation by shares outstanding, showing the dilution impact per share you own. Compare this to EPS to see real profitability after accounting for stock compensation.
Think of it like this
You own 100 shares of a company. They give employees stock worth $500M and have 100M shares. That's $5/share in SBC. If EPS is $10, real earnings are closer to $5 after dilution! It's like your paycheck being $100 but $50 paid in IOUs that shrink your ownership.
Formula
SBC per Share = Total Stock-Based Compensation / Shares Outstanding- Total SBC: Annual stock-based compensation expense
- Shares Outstanding: Total shares issued
Why it matters
- Shows dilution impact per share owned
- Compare to EPS to see real profitability
- Higher SBC/share = more dilution
- Key metric for shareholder value
What's a good value?
< $0.50
Low
Minimal per-share dilution
$0.50-$2
Moderate
Typical for many tech companies
$2-$5
High
Significant dilution impact
> $5
Very High
Severe dilution, major concern
Real-world example
Meta (Facebook): $4/share SBC with $15 EPS - 27% dilution. Salesforce: $3/share SBC with $5 EPS - 60% of earnings! Google: $2/share SBC with $5.50 EPS - manageable 36%. Mature industrials: $0.10-0.50 typical.
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