Imagine a company’s share price is higher than its competitor. the company has lesser shares than the competitor can lesser number of shares be a reason for higher price ?
There is no obvious implied or intrinsic correlation between share price and number of shares when comparing companies. The share price of a company is dependent on the valuation or participants in an open, active market and is based on information such as price earnings ratio, dividends, revenue, profit, market share, etc…….
EPS is due to company itself…….price is decided by investors so pe ratio is dependent on both , company policies and investor exceptions Right ?
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