
Why Does the Stock Market Crash? | Stocks 101 Explained, with Brian Feroldi
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How Do You Calculate the Share Price of a Stock?
At any given time, a stock is valued based on essentially two things. Ta one is the earnings, or the profits of that business. And the other thing is how investors value, or how much investors are willing to pay for it. A very common metric that investors use to figure out that second part is called the price to earnings ratio. That's also called the p e ratio.
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