1. What is Price Per Share?

Price per share represents the monetary value assigned to each outstanding share of a company's stock. It's calculated by dividing the company's total market value by the number of outstanding shares.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Market Value — The total market capitalization of the company (in dollars)
• Shares Outstanding — The total number of shares currently held by all shareholders

Explanation: This calculation shows how much each individual share would be worth if the company's total value were divided equally among all shares.

3. Importance of Price Per Share

Details: The price per share is fundamental for investors to evaluate whether a stock is fairly priced, compare companies of different sizes, and make informed investment decisions.

4. Using the Calculator

Tips: Enter the company's total market value in dollars and the number of shares outstanding. Both values must be positive numbers (market value > 0, shares ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: Is this the same as the stock's trading price?
A: In efficient markets, the calculated price per share should approximate the trading price, but market psychology and other factors can cause deviations.

Q2: What's the difference between market value and book value?
A: Market value is what investors are willing to pay, while book value is based on accounting records. This calculator uses market value.

Q3: How often do shares outstanding change?
A: Shares outstanding can change due to stock buybacks, new issuances, or employee stock options being exercised. Use the most recent data.

Q4: Does this work for private companies?
A: Yes, but you'll need to estimate the market value since private companies don't have market prices.

Q5: Why is price per share important for investors?
A: It helps compare companies of different sizes, assess valuation multiples, and determine how much ownership a given investment buys.