How is Share Price Calculated?

Submitted by Sharemarket News on 19 April, 2011 - 17:08

Learn how to calculate share price.

Share price is the price of one share of stock. Share price is calculated by dividing market capitalisation (company value) by the number of shares issued by the company. Share price is determined before it is subjected to buying and selling impact. Stock Price = (Dividends Paid (Div) + Expected Price (P1)) / (1 + Expected Return (R)).

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