answersLogoWhite

0


Best Answer

Can you answer this question?

"Why can fair price be higher than share price?"

The answer would be very similar to both questions.^^

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why can embedded value per share be higher than share price?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How can the price of a company's share be less than the face value of the share?

How can the price of a company's share be less than the face value of the share?" How can the price of a company's share be less than the face value of the share?"


What is the minimum price of the share?

it's face value is the minimum price of the share


What is the ideal Price Book Ratio?

It should not be more than 1.5. If book value is more than price then margin of safety is there. The share price can be higher than book value but not more than 1.5.


Definition of market value per share?

Market value per share can be defined as the price at which stocks are bought or sold. The market value per share is the current price of the stock.


Market value per share or stock price?

Market value should beTotal # of Shares outstanding X Share price


market value analysis?

these ratios calculate market value of a company. companies with higher market value have higher investment potential compared to those with lower market value. the ratios calculated under this analysis are:a) Earnings per shareEarnings per share = Net income / Shares outstandingb) Price earnings ratioPrice earnings ratio = Market price per share / Earnings per share


How do you calculate market value of a company?

Market Value of a company = No. of outstanding shares * Market price per share Assuming there are 100,000,000 share of XYZ limited and its price per share is $25, the market value of the XYZ limited is $ 2,500,000,000/-


What is the difference between face value and offer price in IPO?

Face value of a share is the minimum value at which a share must be offered to the public. this represents the intrinsic value of the share. Offer price is the price at which people can buy the share in the market. For example: Reliance power offered equity shares of face value Rs. 10 at around Rs. 430 odd a few months back. (I am not exactly sure of the offer price of Reliance power) 10 is the face value 430 is the offer price


Why does the market price of outstanding issues often vary from par?

There is no correlation between PAR and MARKET PRICE . Par value was the assigned value of a share when the company was set up. There can be par value shares and no par value shares. After the first second, the value of that share has changed from the time it was identified as a share or issued as an outstanding share.


What is the price of a share in a mutual fund?

The price investors pay for a share of the company is based primarily on the market value of the securities in the portfolio


How do you get percent from higher value to lower value?

if my price is 52.00 and I am told that I am 180 percent higher. How do I find the lower value


Why is the goal of financial management to maximiize the current share price of the company's stock in other words why isn't the goal to maximize the future share price?

Maximizing the current share price is the same as maximizing the future share price at any future period. The value of a share of stock depends on all of the future cash flows of company. Another way to look at this is that, barring large cash payments to shareholders, the expected price of the stock must be higher in the future than it is today. Who would buy a stock for $100 today when the share price in one year is expected to be $80?