Q:

How do you calculate market price per share?

A:

Quick Answer

In order to calculate the market price per share, you must know the price per share on a given date as well as the number of outstanding shares of stock. You also have to find out if the stock pays dividends. Put these values in a formula to determine the market price per share.

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Full Answer

  1. Choose the calculation date

    Choose a date as a marker. The date should be recent to measure past performance.

  2. Find the stock price on that date

    Look at company reports to find the price of the stock on your chosen date. Other sources, such as libraries, offer historical stock prices.

  3. Subtract any dividends

    Some stocks pay dividends. Check the dividend amount paid on the stock listed alongside the stock price for a given date. Subtract the dividend from the stock price before proceeding.

  4. Determine the number of shares

    Locate the number of shares of common stock or non-dividend-paying shares. Find it on the yearly or quarterly reports in the company files.

  5. Do the math

    Now you have the information to calculate the market price per share. Divide the price per share on a given date minus the dividends by the total number of shares of common stock.

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