Price Per Share Calculator
Calculate and compare stock prices based on market cap
🏢 Company A
Total shares issued by the company
Total company value
🏢 Company B
Total shares issued by the company
Total company value
📊 Comparison Analysis
💰 Which One is Cheaper?
📈 Investment Scenario: $10,000
Example Calculation
Given Information
Company Market Capitalization: $50,000,000
Number of Outstanding Shares: 1,000,000 shares
Calculation Steps
1. Identify outstanding shares: 1,000,000 shares
2. Identify market capitalization: $50,000,000
3. Apply formula: Price per share = Market cap ÷ Shares
4. Calculate: $50,000,000 ÷ 1,000,000 = $50.00
📐 Formula
📊 Market Cap Categories
💡 Investment Tips
Higher share price doesn't mean better value
Compare market cap, not just share price
Consider P/E ratio and other metrics
Stock splits affect share price but not value
Outstanding shares can change over time
Understanding Price Per Share
What is Price Per Share?
Price per share is a metric that assesses the value of a single share of stock by comparing the company's total market capitalization with the number of outstanding shares.
- •Market Capitalization: Total value of all company shares combined
- •Outstanding Shares: Total number of shares issued by the company
- •Share Price: Cost to buy one share of the company
Why It Matters for Investors
Price per share helps investors understand stock value and make informed investment decisions:
- •Comparison Tool: Compare different stocks objectively
- •Accessibility: Determine if a stock fits your budget
- •Market Value: Quick snapshot of company valuation
- •Portfolio Planning: Calculate how many shares you can buy
⚠️ Common Misconceptions
Reality: Market cap determines total value, not share price. A $10 stock could represent a larger company than a $100 stock.
Reality: Price per share alone doesn't indicate value. Consider the company's fundamentals and growth potential.
💼 Real-World Example
Question: What is the price per share if a company with 1,000,000 shares is worth $8,000,000?
Calculation:
- • Market Capitalization: $8,000,000
- • Outstanding Shares: 1,000,000
- • Formula: Price per share = $8,000,000 ÷ 1,000,000
- • Answer: $8.00 per share
Investment Scenario: With $10,000, you could buy 1,250 shares of this company.