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  • Nov 3, 2007, 07:48 PM
    marielav
    Price Per Share
    How to calculate price per share
  • Feb 21, 2012, 05:56 PM
    CliffARobinson
    1st Step:
    Calculate the correct date taking into account non-trading days, information available from corporate filings, etc.

    2nd Step
    Located in quarterly and annual reports, calculate the company's net income as of the date you chose in the 1st step.

    3rd Step
    Subtract out the dollar value of any dividends paid on preferred stock -- this is the numerator.

    4th Step
    Calculate the number of common outstanding shares as of the date you chose. If you have to use an average number, use a weighted average -- this becomes the denominator

    5th Step
    Divide the number from the 3rd step by the number of common shares from the 4th step.

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