A stock share price is an indication of a company’s value. Generally, a company’s share price is determined by the earnings power of the business, which will be reflected in the stock price. A better business will have a higher stock price than a poorly performing one. As a result, it is important to consider the business’s future potential in determining the share price.
Using Google Finance data, Stock Share Price Analysis (SSPA) calculates the share price by examining the company’s historical share price and its current earnings per share. This price is then compared to future price discounts to calculate the current fair value of the share. The SSPR method also includes estimating future stock share earnings, which allows a direct comparison between current and future share prices.
Stock share prices fluctuate frequently because of market forces such as supply and demand. If more people want to buy a company’s shares, the price will rise. Conversely, if more people want to sell the shares, the price will fall. It is therefore important to understand the factors influencing the share price and how these affect your decision to buy or sell.
The market cap of a company is the total value of its outstanding shares. Market cap is a useful indicator of a company’s worth because it provides a basis for measuring the value of individual shares. For example, a company with 20 million shares at $50 a share has a market cap of $1 billion.