How to Calculate Market Value Per Share ?

 How to Calculate Market Value Per Share ?

Market value per share, also known as the market price per share or simply the stock price, represents the current price at which a company's stock is trading in the open market. To calculate the market value per share, you can use the following formula:

Market Value Per Share = Market Capitalization / Total Number of Outstanding Shares

Here's a breakdown of the components:

1. Market Capitalization:

2. This is the total market value of a company's outstanding shares of stock. It is calculated by multiplying the current market price per share by the total number of outstanding shares.

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4. Market Capitalization = Current Market Price Per Share × Total Number of Outstanding Shares

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7. Total Number of Outstanding Shares:

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9. This represents the total number of shares of a company's stock that have been issued and are in circulation. This information can typically be found in a company's financial statements or from financial news sources.

Once you have both the market capitalization and the total number of outstanding shares, you can use the formula above to calculate the market value per share.

Here's a step-by-step example:

Suppose a company has a market capitalization of $10 million, and there are 1 million outstanding shares. To calculate the market value per share:

Market Value Per Share = $10,000,000 (Market Capitalization) / 1,000,000 (Total Outstanding Shares) = $10 per share

So, in this example, the market value per share for the company is $10.

Keep in mind that the market value per share can fluctuate throughout the trading day as the stock price changes in response to supply and demand in the stock market. Therefore, it's essential to check real-time stock prices if you need the most up-to-date market value per share for a particular company.