How to calculate stock price?

ITC :

 BOOK VALUE : RS. 23.95

MARKET VALUE: RS. 251.90 

DIFFRENCE : RS 227.95

NOW THIS DIFFERENCE MAY BE DUE TO FUTURE PROSPECTS OF COMPANY, DEMAND-SUPPLY EFFECT IN SHARE PRICE, INVESTORS OWN ASSUMPTION ABOUT PERFORMANCE OF COMPANY, COMPAMY'S PERFORMANCE..........AND THERE ARE MANY OTHER REASONS DUE TO WHICH A SHARE OF A COMPANY IS DETERMINED...

Hey..

I also need to know this.

Originally posted by : vaishali
	Please tell me how to calculate stock price ? Also if possible please explain on following price.   Company name: ITC Today stock price: 253   Company Name: Infosys: Today Stock Price: 2245   Thanks Vaishali

Its simple

If you have studied amalgamation in CA-IPCC/PCC/PE2 you can apply the intrinsic value method to find whether the the company's share prices are underpriced or overpriced by comparing the Market price to the intrinsic value. Its the most safer way to invest ie fundamental approach.