Let's make it easy to understand how to calculate the rating!

Today, we're going to talk about a very important concept in stock investing, called "valuation". We'll try to make it as simple and easy to understand as possible for those who are new to stocks or who have trouble understanding it. Let's get started!

What is the price-to-earnings ratio?

The word "mark-to-market" refers to the average purchase price of your own stock, which changes every time you buy a share. This plays an important role in knowing how much you need to buy or sell a stock to make a profit or loss.

How do I calculate my per share price?

Calculating the ##MV is pretty straightforward. You can easily calculate it with the following formula

Average unit price = total amount purchased / total number of units purchased

If this doesn't make sense, here's an example to illustrate.

Example of calculating the average unit price

For example, let's say you bought 10 shares of stock A at $1000 and later 20 shares at $2000. Let's calculate the average price.

First purchase: 1000 won * 10 shares = 10000 won

Second purchase: 2000 won * 20 shares = 40000 won

So the total purchase amount is 10000 won + 40000 won = 50000 won, and the total number of shares is 10 shares + 20 shares = 30 shares.

Using this to calculate the unit price, we get 50000 won / 30 shares = about 1667 won. Therefore, the unit price of A stock is 1667 won.

Conclusion

Price-to-earnings ratio is a very important concept in stock investing. Understanding and utilizing it can help you make better decisions in stock investing. I hope you found today's post useful. See you in the next installment!

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So that's the basics of price-to-earnings and how to calculate it. I hope this helps those who are new to stocks or those who have difficulty calculating price-to-earnings to understand it. Stay tuned for more informative content. Thank you!

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