How to calculate the stock price?

Stock price calculation formula: stock price = face value x dividend rate/bank interest rate. The stock price refers to the transaction price of the stock, which is a concept relative to the stock value. The real meaning of stock price is the value of enterprise assets, and the value of stock price is equal to earnings per share multiplied by price-earnings ratio.

What is the relationship between stock price and value?

Stock is a proof of ownership, a virtual asset, and actually has no value. But a stock can have a price for investors to buy and sell in the securities market, which shows that it is valuable. As far as the relationship between price and value is concerned, they are the same as a whole; However, in a certain period of time, the price and value are different.

Suppose that when trading in the stock market, investors can conduct rational trading and buy stocks when the stock price is lower than the intrinsic value of their company; When the stock price is higher than the value, everyone can make long-term investment according to the value of the listed company itself, and make investment after comprehensively considering the performance, industry situation and economic foundation of the enterprise. In fact, as we all know, the stock market is not like this. For a long time, the price has seriously deviated from its value.

On the determination of stock price, we know that the change of stock price is determined by the change of market supply and demand and the fluctuation of long and short power in our own stock market, and has nothing to do with value in a certain period of time. If the price and value are equal, people will mistakenly think that the stock price and value are equal or fluctuate up and down. Where a stock price can rise depends not on its own price, but on the market environment of the stock market and the investment atmosphere of investors. Sometimes it often exceeds its value, and sometimes it will rise by 1 times or twice. Even in the case of fanaticism, 5 times, 10 times or 20 times. For example, the recent Eastern Communication has increased by 10 times in a short time.