Stock Price



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How is the value of a share calculated?

2 Answer(s)


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Shares have 2 kinds of value - market value and book value.

Book Value of a Share is obtained by looking at the balance sheet. There will be an item called shareholders equity. Take that number and divide it by the total number of shares and you will get the share price. This reflects the fundamental operations of the company with no consideration for future prospects or any other macro economic conditions.

The market value is explained in this blog article -
http://www.dezyre.com/article/term-of-the-day-market-value/24

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How do you get to know the number of shares a company has?

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