Share Price Calculator

Formula

To calculate the share price:

\[ SP = \frac{D}{\frac{rr}{100} - \frac{g}{100}} \]

Where:

$SP$ is the Share Price (\$)
$D$ is the Dividends per Share (\$)
$rr$ is the Return Rate (%)
$g$ is the Growth Rate (%)

Share Price Definition

A share price is defined as the total cost of one share of a given stock or security. It is calculated using various financial metrics, including dividends, return rates, and growth rates. The share price reflects the market value of a single share and is an important factor for investors when making buy or sell decisions.

Example Calculation 1

Let's assume the following values:

Dividends per Share ($D$) = $5
Return Rate ($rr$) = 8%
Growth Rate ($g$) = 2%

Using the formula:

\[ SP = \frac{5}{\frac{8}{100} - \frac{2}{100}} = \frac{5}{0.08 - 0.02} = \frac{5}{0.06} \approx 83.33 \]

The share price is approximately $83.33.

Example Calculation 2

Let's assume the following values:

Dividends per Share ($D$) = $10
Return Rate ($rr$) = 12%
Growth Rate ($g$) = 3%

Using the formula:

\[ SP = \frac{10}{\frac{12}{100} - \frac{3}{100}} = \frac{10}{0.12 - 0.03} = \frac{10}{0.09} \approx 111.11 \]

The share price is approximately $111.11.