how to calculate a share prices
this is all the info. I have,
Share Outstanding Date Share Price Operating Income Debt
4,237,780 03/31/2016 ???? $ 21,985,000 $ 16,905,000
I think this is how it goes. I'm no economist though!.
Subtract the debt from Operating Income. That gives you "Net Income"
Divide Net Income by the outstanding shares.
That gives you the initial Share Price. Once it starts trading on the Stock Exchange, its value is determined by buyers and sellers, taking into account the company business and its prospects.
