Share Price/Market Capitalisation - Aussie Stock Forums

1. ## Share Price/Market Capitalisation

Is this correct…?

Stock (a) with Total Shares on Issue of 100,000 million and a current Market Capitalisation of \$5 million should reflect a current share price around 5ish cents

Stock (b) with Total Shares on Issue of 100,000 million and a current Market Capitalisation of \$10 million should reflect a current share price around 10ish cents

Stock (C) with Total Shares on Issue of 50 million and a current Market Capitalisation of \$5 million should reflect a current share price around 10ish cents

Stock (d) with Total Shares on Issue of 50 million and a current Market Capitalisation of \$10 million should reflect a current share price around 20ish cents

Is this theory valid or am I on the wrong track with regards to total shares on issue, market cap. and average share price.

2. ## Re: Share Price/Market Cap.

Basically correct - when working with profit/earnings targets and back calculating EPS to gauge a likely fair value, I like to include any unexpired options in or close to the money and any shares held in escrow, so some people will calculate the market cap themselves slightly differently

3. ## Re: Share Price/Market Cap.

Thanks Mofra, much appreciated.

4. ## Re: Share Price/Market Cap.

Originally Posted by krisbarry
Is this correct…?

Stock (a) with Total Shares on Issue of 100,000 million and a current Market Capitalisation of \$5 million should reflect a current share price around 5ish cents

Stock (b) with Total Shares on Issue of 100,000 million and a current Market Capitalisation of \$10 million should reflect a current share price around 10ish cents

Stock (C) with Total Shares on Issue of 50 million and a current Market Capitalisation of \$5 million should reflect a current share price around 10ish cents

Stock (d) with Total Shares on Issue of 50 million and a current Market Capitalisation of \$10 million should reflect a current share price around 20ish cents

Is this theory valid or am I on the wrong track with regards to total shares on issue, market cap. and average share price.
Can I ask what formula you are using?

5. ## Re: Share Price/Market Cap.

I am assuming 10X

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