1. What is Price Per Share?

Price per share represents the monetary value of a single share of a company's stock. It's calculated by dividing a company's market capitalization by its total number of outstanding shares.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Market Capitalization — Total market value of the company (in dollars)
• Total Outstanding Shares — Number of shares currently held by all shareholders

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

3. Importance of Price Per Share

Details: Price per share helps investors evaluate 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 dollars and the total number of outstanding shares. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is price per share the same as stock price?
A: Essentially yes, though stock prices fluctuate constantly based on market trading while this calculation provides a theoretical value.

Q2: Why might the calculated price differ from the actual stock price?
A: Market prices reflect investor sentiment, future expectations, and supply/demand, while this calculation is purely based on current valuation.

Q3: How often should I calculate price per share?
A: For active investors, monitoring this regularly (quarterly or when significant company changes occur) is recommended.

Q4: Does this work for all types of companies?
A: This works for publicly traded companies. Private companies may use different valuation methods.

Q5: Where can I find market cap and shares outstanding?
A: These figures are available in company financial statements, annual reports, and most financial websites.