How to calculate the value of the shares
There are several methods to calculate the value of shares:
1. Market capitalization: This method involves multiplying the current stock price by the number of outstanding shares. This will give you the total market value of the company.
2. Book value: The book value of a company's shares is calculated by subtracting its liabilities from its assets and dividing the result by the number of outstanding shares. This will give you the book value per share.
3. Earnings per share (EPS): EPS is calculated by dividing the company's net income by the number of outstanding shares. This will give you the amount of earnings that each share is entitled to.
4. Price-to-earnings (P/E) ratio: The P/E ratio is calculated by dividing the current stock price by the EPS. This will give you an indication of how much investors are willing to pay for each dollar of earnings.
5. Dividend yield: The dividend yield is calculated by dividing the annual dividend per share by the current stock price. This will give you the percentage return on your investment through dividends.
These are just a few methods to calculate the value of shares. It is important to consider multiple factors and use different valuation methods to get a more accurate picture of a company's share value.