How Do You Determine Common Stock Market Value?
In finance, investors often talk about finding the “value” of something. After all, determining the value of an asset helps to distinguish a good investment from a poor one. The challenge is determining the difference between how the market values a stock and its actual, intrinsic value. Obtaining the market value of a stock can be as simple as looking up a quote, or it can involve a combination of other valuation techniques that compare a stock against other similar companies. Review the types of market valuation used. For stocks, the most common valuation methods are price-to-earnings ratio, earnings per share, and market capitalization. Look up a quote. This is perhaps the easiest way to determine the value of common stock. Use the ticker symbol to do a Google search You’ll get a quote for the stock (what it costs to buy the stock in the market). You can also go to Yahoo! Finance. It is rated the No. 1 financial research tool on the Internet, according to Alexa.com. Calculate earnin