They can reflect the past success of the underlying business
Thursday 23 Jan 2020 Author: Martin Gamble
A lot of investors presume that a stock priced at £10 is much more expensive than something priced at 250p. Yes, you need more money to buy a single share, but you can’t learn anything about how the equity is valued from its share price. Classic methods of valuing a company include comparing a share price to something else such as its earnings or dividends. However, a high share...