What is meant by stock values?

Answer 1

In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks. The main use of these methods is to predict future market prices, or more generally, potential market prices. Investors in the stock market can determine a stock's value by looking at such factors as:

Earnings (past, present and, more importantly, future projections)

Market share

Sales volume over time

Potential and current competitors

Running through a variety of metrics

Reviewing reports by analysts who follow the company

Answer 2

Stock values can relate to the current trading price of an individual security or the overall valuation level of stocks in the aggregate as measured by various valuation methods. While we can always determine the current value of a specific stock at any moment during the trading day, this tells us nothing about the overall level of stock valuations. For example, market analysts may say that stock valuations are stretched or high if the average price earnings ratio is way above the historical norm or if dividend yields are far below the returns that can be obtained on fixed income investments.

Answer 3

It is the price you pay to buy a share or shares in a company. These values fluctuate. Trading stocks and shares can be very lucrative but you can also lose your money.