Value of stock price formula
Another important part to calculate the outstanding share is the treasury stocks of the company. So the formula for calculation of common stock is the number of outstanding shares is issued stock minus the number of treasury shares of the company. This stock valuation calculator uses the present value of growing perpetuity formula to calculate the stock valuation based on a series of ever increasing dividend payments. The stock valuation formula is based on the Gordon growth model which is discussed in more detail in our How to Value a Stock tutorial.