Calculating dilution requires an understanding of the options outstanding and how many shares have been authorized. These calculations can seem a little complicated, so it may be best to consult with a financial analyst or another expert in this area before performing them yourself.
In terms of what data is needed, it is important to know the following:
• number of shares outstanding
• number of options exercisable
• price of the options currently trading
once this information has been collected, the following calculation can be applied:
adjusted number of shares = (shares outstanding + number of options x shares per option) - (number of exercisable options / price of option)