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How to calculate/produce the stock price today?

How to calculate/produce the stock price today?

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Answer #1

The price of the stock is calculated usually when a company goes public and the company comes up with an initial public offering for public to buy its shares for the first time. At that time the share price is calculated at the intrinsic value of the company. The net assets and liabilities of the company are taken into consideration to know the real worth of the company.

After a company goes public and starts trading on the exchange, its price is determined by supply and demand for its shares in the market. The price earnings ratio and and the earning per share is used to determine the price of the stock.

STOCK PRICE= PRICE TO EARNINGS RATIO/ EARNINGS PER SHARE.

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