How is current stock price calculated
The P/E ratio is calculated by dividing the price of the stock by the total of its If it were trading at its historical P/E ratio of 18, the current stock price should be 18 There are many reasons a stock price can become undervalued or overvalued. selling among themselves that determine the current market value of a trade. A stock's price is the result of many offers to buy and sell. New investors may puzzle over the rapidly changing values of stocks on the various exchanges and