Price Per Share (PPS)

Price Per Share (PPS) refers to the current market price of a single Share of a company’s Stock. It is an essential metric used by investors to evaluate the value of a company and to make informed investment decisions.

The PPS can fluctuate based on various factors, including market demand, company performance, and broader economic conditions. It is commonly used to calculate a company’s Market Capitalization, which is the total market value of all Shares/">Outstanding Shares.

Examples:

• If Company A has 1 million Shares outstanding and its PPS is $10, its Market Capitalization is $10 million.
• If Company B’s PPS rises from $20 to $25, it indicates an increase in investor confidence or company performance.

Cases:

• Initial Public Offering (IPO): When a company first sells Shares to the public, the PPS is set during the IPO process based on investor interest and valuation.
• Stock-split/">Stock Split: If a company undergoes a 2-for-1 Stock-split/">Stock Split, the PPS will be halved, but the overall value of the investment remains the same.