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DCALongRun

05/16/15 2:50 AM

#243200 RE: coachum #243198

I will have to disagree with your statement about pps (price per share). It is used as valuation method at a given moment time on what a company is worth. From the stock price you can extrapolate out the companies valuation and market capitalization and makes some calculations and comparisons to other companies and figure out if a company is under or overvalued. This of course gets into the p/e price earnings ratio. You can also do metrics about price per share with revenues.

At any moment of time everything that is known about a company is priced in its stock price. Changes happen when the price is below are above the fundamentals.