How to calculate stock price finance
Multiply the stock’s P/E ratio by its EPS to calculate its actual market value. In the above example, multiply 15 by $2.50 to get a market price of $37.50. Determining Industry Average Price Calculating the value of a stock The formula for the price-to-earnings ratio is very simple: Price-to-earnings ratio = stock price / earnings per share To identify current price of a stock, the first step is to divide Stock growth rate by 100 and add one. Multiply the resultant value with current dividend per share. Second step is to subtract stock growth rate from the required rate of return, and divide the resultant value by 100.