Stock Exchange?

Question

In stock market how can we calculate the fair value of share of company. sorry for my english

Answer 1

Very good question, but one with a million answers. The fair MARKET value is easy--that's the price it is trading at now (unless you own more shares than you could sell on the market without changing the price). To compute the real value of the company, you need to evaluate the company's ability to earn money, the risk involved, and compare that to other investments that you could make. There's a lot of guess work in the calculations, which is why experts differ on whether a stock is a good buy.