What is the correct method to calculate the current price of a share?
The market price of a share is determined by trading activity on the stock exchange and reflects what buyers are willing to pay and sellers are willing to accept. However, if you want to calculate the theoretical value of a share, you can use financial metrics like Earnings Per Share (EPS) and Price-to-Earnings (P/E) ratio:
Share Price = EPS × P/E Ratio