How Do You Calculate Price Per Share Of Common Stock?
The price per share of common stock can be calculated using several methods. Stock analysts use several methods to calculate price per share of many stocks using similar techniques for companies in the same industry. Find stock quotes in the newspaper or online (see Resources). Always use the close price if it is after exchange hours or the last quote when trading during the day. Consult a periodical, such as the “Value Line Investment Survey,” to locate the book value. Compare book value, the historical P/E and the 3-to-5-year price projection. This shows the expected range in which the stock should trade, which will indicate whether the stock is trading above or below its long-term price. Multiply the stock price by the number of shares outstanding. This is the capitalization of the company. Ignore stock options to employees and divide the stock price by the earnings per share. This is the multiple of the stock or a representation of the expected future earnings of the company. Estim
