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What is the the current price of a share of stock ?

What is the the current price of a share of stock for a firm with $5 million in balance-sheet equity, 500,000 shares of stock outstanding, and a price/book value ratio of 4?

Public Comments

  1. None of the statistics you mention have any validity in telling you the current price. Current price is the last price the stock sold for on the market plus the next price it will sell for, divided by 2. But more accurately the price you could hope to sell a significant quantity of the shares for over a short period of time, knowing that those are al deliberately loose terms. Why the numbers you give do not matter? The date at which the balance sheet equity and book are computed can have shifted heavily, or not at all, while price may have shifted 30% or more and not necessarily in the same direction.
  2. sounds like an overly basic (if impractial) school exercise. if equity = BV, then 5mm x 4x multiple = 20mm market value divided by 500k shares outstanding = 40 bucks per share. in reality of course this is not how the mind would work, as you would never have these values but i guess the point is to be able to calculate bv/share to compare it to market value, which normally isn't that important but in today's market people will be looking at it a little more to find a floor in valuations.
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