InvestorsHub Logo
Followers 10
Posts 823
Boards Moderated 0
Alias Born 12/02/2012

Re: A deleted message

Monday, 02/25/2013 7:13:04 PM

Monday, February 25, 2013 7:13:04 PM

Post# of 92241
"...stocks don't just "go up" to a certain value. The stock price is entirely dependent on how many shares are outstanding."

This is new to me. I always thought that revenue, growth, earnings, margins, distinct business advantages (patents, technology, mass effect, first-mover advantage, etc.) determined the stock price of a company.

If "the stock price is entirely dependent on how many shares are outstanding" how do metrics such as ROI, ROE, CAGR, EPS, and P/E fit into our investment decision?