How common stocks are valued?

Answer 1

Okay. This is far too vague a question, so I will answer it according to two of the most common formats to this question.

New Issues: When a company issues new stocks, the stock has a 'par value' which has nothing to do with the market price of the common stocks that are being issued. It is simply to determine a value for State Tax purposes and is usually $1 or less.

Market Value: A common answer to what determines the value of the stock is the supply and demand of the stock...NOT EXACTLY.
A stock's market value is determined by supply and demand, the company's value and the P/E ratio (which the company determines itself).
The supply and demand should be self-explanatory, so I won't go into great detail about that. It is one of the largest factors that influence a stock's value.
The Company's value is obviously the most important, as this is also going to determine the supply and demand component. The overall assets of the company less any dividends paid to the common shares, divided by the total number of shares outstanding will give you the earnings per share. As this increases or decreases, the market value will adjust accordingly.
Example: XYZ reported earnings and there was a 50% positive surprise on their report. This means that the analysts out there thought it would report a .50/share earnings, but instead the company reported $.75/share. The end result is that there will be an increase in the share market value, as the Earnings Per Share increased AND with the great news, the everyone is fighting tooth and nail to buy these shares (thereby increasing the buy traffic over the sell, which results in an increase in the market share value).
Or, lets say XYZ decides to buyback some of their outstanding common shares. Will there being less shares out there, the Earnings Per Share figure adjusts to increase the Market Value of the common shares.
Finally, there is something called the Price-to-Earning Ratio (P/E ratio) which is commonly referred to as the multiplier. This is determine by the company itself...not the market. This metric is used to determine if a company is cheaper or more expensive to its peers.
Example: XYZ has a P/E of 15, while MNO has a P/E of 20. If XYZ has an EPS (earnings-per-share) of $1.50, this means their market value is $22.50. If MNO has an EPS of $1.25, than that means their market value per share is $25. In this situation, XYZ is cheaper and the better buy, since they are both in the same sector (the widget industry). XYZ could actually increase their P/E ratio to match that of MNO and still be the same as MNO...but would have a market value per share jump to $30/share.
A nice jump if I do say so.

So, you see there is a LOT that goes into the value of a share. Hope this helps.

Answer 2

The stock is worth what someone is willing to pay (the "bid" or "offer" price). Warning: most publications print the most recent transaction price, which may be out of date a minute after the transaction took place due to news about the company or the economy. Par value is an archaic concept for stocks.

Answer 3

They are valued every moment by market conditions, constantly changing depending on what people see in the future for the company.

Answer 4

They are valued by the open market - supply and demand.

Answer 5

Your question is imprecise... e book fee and marketplace fee of fairness are exceedingly distinctive. e book fee of fairness is the single that i could pass with. inventory fee is punctiliously distinctive... that's what's the marketplace fee of fairness (aka inventory fee). even with the incontrovertible fact that, utilising financial calculations, boom inputs, you may estimate whether or no longer the marketplace fee of fairness is over or below priced.

Answer 6

par value