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How to calculate stock price?

vaishali (Accountant) (82 Points)

12 July 2012

Please tell me how to calculate stock price ? Also if possible please explain on following price.

Company name: ITC

Today stock price: 253

Company Name: Infosys:

Today Stock Price: 2245

Thanks

Vaishali

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RAMESH CHANDRA SHARMA (munka istentisztelet) (899 Points)
Replied 13 July 2012

ITC :

BOOK VALUE : RS. 23.95

MARKET VALUE: RS. 251.90

DIFFRENCE : RS 227.95

NOW THIS DIFFERENCE MAY BE DUE TO FUTURE PROSPECTS OF COMPANY, DEMAND-SUPPLY EFFECT IN SHARE PRICE, INVESTORS OWN ASSUMPTION ABOUT PERFORMANCE OF COMPANY, COMPAMY'S PERFORMANCE..........AND THERE ARE MANY OTHER REASONS DUE TO WHICH A SHARE OF A COMPANY IS DETERMINED...

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Palash Gupta (Student...Hoping to pass Inter) (892 Points)
Replied 14 July 2012

Hey..

I also need to know this.

Aditya Murthy (CA-Final Grp 1 cleared) (27 Points)
Replied 04 August 2012

Originally posted by : vaishali
	Please tell me how to calculate stock price ? Also if possible please explain on following price. Company name: ITC Today stock price: 253 Company Name: Infosys: Today Stock Price: 2245 Thanks Vaishali

Its simple

If you have studied amalgamation in CA-IPCC/PCC/PE2 you can apply the intrinsic value method to find whether the the company's share prices are underpriced or overpriced by comparing the Market price to the intrinsic value. Its the most safer way to invest ie fundamental approach.