how to calculate market value of common equity using Compustat
Posted: 12 August 2015 02:39 PM   [ Ignore ]
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Hi, I want to calculate market value of common equity, so I multiply stock price and shares of common equity. There is cshpria (Common Shares Used to Calculate Earnings Per Share (Basic) - As Reported) in G_FUNDA and CSHOC (Shares Outstanding) in G_SECD.
What is the difference between these two? Which one should I use?

Thanks in advance for your help!

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Posted: 12 August 2015 04:48 PM   [ Ignore ]   [ # 1 ]
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hi,

Could you check when these are different? It may be that stock splits are treated differently for those 2 variables. If so, I would suspect (but am not sure), that cshpria (“as reported”) is not adjusted, and shares outstanding is. If that is the case (again - doublecheck), then it depends on what stock price you are using: split adjusted, or not.

Hope this helps,

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Posted: 12 August 2015 05:53 PM   [ Ignore ]   [ # 2 ]
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Thank you for your reply!
I just find cshpria number is higher than the cshoc number. I use PRCCD (Price - Close - Daily) in G_SECD. There is no data description about PRCCD, so I am not sure which one should I use.

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Posted: 12 August 2015 07:06 PM   [ Ignore ]   [ # 3 ]
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Ok, how about find a firm that has had (several) stock splits; then compare the Compustat data with Yahoo Finance data - finance.yahoo.com - (which has both actual and adjusted stock price), so you know for sure.

Best,

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