Stock-Based Compensation (SBC)

Non-cash expense for equity awards (options, RSUs) granted to employees. Added back to net income in OCF because it reduces GAAP earnings without a cash outflow. However, SBC is economically real — it dilutes existing shareholders and represents the true cost of employee labour. Value investors subtract SBC from OCF to arrive at owner earnings.

Representative XBRL tag

ShareBasedCompensation

Primary source ↗

Related terms

• Short-Term Debt
• Short-Term Investments
• Stockholders' Equity
• Straight-Line Rent Adjustment

← All terms

Metrics on this page are computed by Moatkeep from reported filings and market data and are estimates: they depend on modelling choices (e.g. period alignment, share counts, currency) and on the underlying data being correct. Definitions are in the glossary. Figures are not investment advice — see the full disclaimer.