1. What is Market Value Per Share?

Market Value Per Share represents the current price of a single share of a company's stock, calculated by dividing the company's total market capitalization by its number of outstanding shares.

2. How Does the Calculator Work?

The calculator uses the market value formula:

Where:

• Market Cap — Total market value of the company in USD
• Outstanding Shares — Total number of shares currently held by all shareholders

Explanation: This calculation gives you the theoretical price per share based on the company's total valuation and share count.

3. Importance of Market Value Calculation

Details: Knowing the market value per share helps investors assess whether a stock is overvalued or undervalued, compare companies of different sizes, and make informed investment decisions.

4. Using the Calculator

Tips: Enter the company's total market capitalization in USD and the number of outstanding shares. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between market value and book value per share?
A: Market value reflects current investor sentiment and future expectations, while book value is based on accounting values from the balance sheet.

Q2: How often does market value per share change?
A: It changes continuously during trading hours as the market cap fluctuates with stock price movements.

Q3: Does this account for diluted shares?
A: This calculator uses basic outstanding shares. For diluted share count, you would use fully diluted shares outstanding.

Q4: Why might the calculated value differ from the actual stock price?
A: Differences can occur due to time delays in reporting outstanding shares or if using estimated rather than real-time market cap.

Q5: Can this be used for private companies?
A: Only if you have an accurate estimate of the company's market capitalization, which is harder to determine for private firms.