Value of Stock

#2
Total profit earned by company/total shares in market = earning per share
Price is what is determined by market.
P/E between 8-15 is good. In bear markets, not good to buy any share at PE >10.

so you can have rough estimate of value of a share by multiplying EPS*10.

P/E is just dividing the factual EPS by market price.
 

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