1. What is Share Value?

Share Value represents the price of a single share of a company's stock, calculated by dividing the company's market capitalization by the number of outstanding shares.

2. How Does the Calculator Work?

The calculator uses the share value formula:

Where:

• Market Cap — The total market value of the company (currency)
• Shares Outstanding — The total number of shares issued by the company (number)

Explanation: This calculation gives you the theoretical value of each share if the company's value were divided equally among all outstanding shares.

3. Importance of Share Value Calculation

Details: Understanding share value helps investors assess whether a stock is overvalued or undervalued, compare companies of different sizes, and make informed investment decisions.

4. Using the Calculator

Tips: Enter the company's total market capitalization in currency units and the total number of shares outstanding. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this the same as share price?
A: The calculated share value should theoretically match the market price, but in reality, market prices fluctuate based on supply and demand.

Q2: What's the difference between basic and diluted shares outstanding?
A: Basic shares include currently issued shares, while diluted shares include potential shares from options, warrants, and convertibles.

Q3: How often does market cap change?
A: Market capitalization changes constantly as the stock price fluctuates throughout the trading day.

Q4: Why might share value differ from book value per share?
A: Book value is based on accounting values, while market value reflects investor expectations about future performance.

Q5: How do stock splits affect share value?
A: In a stock split, shares outstanding increase and share price decreases proportionally, leaving market cap unchanged.