o/s and price-per-flowing-barrel... Well put to both CS and Black. The number of outstanding shares ALWAYS comes into play. Additional metrics could include CS' calculation of p/fb. The lesser of both is what I would value the company at. Using p/fb correlates what the market is not using to set valuation for a specific company...but can be used to calculate what a potential take-over could be (minus debt...etc). Using o/s gives a direct "at the time of trade" valuation for what the market thinks is the companies value (though oil/gas sector is over-sold currently). You have to consider both. Anyone that states the number of outstanding shares doesnt matter in the long run, doesn't know what they are talking about. Numerous articles and literature on the web folks. When (not if) the company consolidates its shares (probably 5:1, in 2013), you'll understand why the number of o/s comes into play. What financial institution would invest money in a stock with so much dilution the SP doesnt move on material news? answer: none.