Here you go (directly from Adobe):
Given a width in pixels and a maximum number of lines to display, the HeadlineTextField alters the font size to make the text fit the field. If the text is short the font size will be very large, creating a tabloid-style headline. If the text is long the font size will of course be smaller.
The HeadlineTextField.fitText() method shown below does the font sizing work:
public function fitText(msg:String, maxLines:uint = 1, toUpper:Boolean = false, targetWidth:Number = -1):uint
{
this.text = toUpper ? msg.toUpperCase() : msg;
if (targetWidth == -1)
{
targetWidth = this.width;
}
var pixelsPerChar:Number = targetWidth / msg.length;
var pointSize:Number = Math.min(MAX_POINT_SIZE, Math.round(pixelsPerChar * 1.8 * maxLines));
if (pointSize < 6)
{
// the point size is too small
return pointSize;
}
this.changeSize(pointSize);
if (this.numLines > maxLines)
{
return shrinkText(--pointSize, maxLines);
}
else
{
return growText(pointSize, maxLines);
}
}
public function growText(pointSize:Number, maxLines:uint = 1):Number
{
if (pointSize >= MAX_POINT_SIZE)
{
return pointSize;
}
this.changeSize(pointSize + 1);
if (this.numLines > maxLines)
{
// set it back to the last size
this.changeSize(pointSize);
return pointSize;
}
else
{
return growText(pointSize + 1, maxLines);
}
}
public function shrinkText(pointSize:Number, maxLines:uint=1):Number
{
if (pointSize <= MIN_POINT_SIZE)
{
return pointSize;
}
this.changeSize(pointSize);
if (this.numLines > maxLines)
{
return shrinkText(pointSize - 1, maxLines);
}
else
{
return pointSize;
}
}