Two shares can sit at very different prices and still belong to companies of the same size, or the reverse. Iggy and Angela work through two invented examples, one at S$0.20 and one at S$20, to ask how many shares exist, what each share earns or pays, and what a price per share leaves out.
A twenty-cent share can look cheap, while a twenty-dollar share can look expensive, but neither price tells you how big the company is. In this episode, I use two invented companies to show why share count changes everything. One company has a S$0.20 share and a S$2 billion market value, while the other has a S$20 share and a S$1 billion market value. We also look at what each share earns, what it pays, and why a low price does not give a share more room to double.
Key takeaways:
A S$0.20 share can belong to a larger company than a S$20 share.
Market value comes from price multiplied by the number of shares.
Company A earns one cent per share, Company B earns two dollars per share.
Company A costs twenty times earnings, Company B costs ten times.
A one-cent move is five percent of a twenty-cent share, but tiny for a S$20 share.
Iggy’s Forensic Disclaimer
This content is produced for educational and informational purposes only. I am not a financial advisor. I am a retail investor who applies forensic analysis to my own portfolio and shares that process publicly. Nothing here constitutes a recommendation to buy, sell, or hold any security, and no specific target prices or personalised financial advice are offered.
Stocks assessed under Iggy’s Forensic Yield Standard are benchmarked against a 4.7% minimum yield hurdle. Stocks flagged as Growth Watch fall below this threshold but demonstrate clean balance sheet metrics and an identifiable growth catalyst. These carry a materially different risk profile and are not suitable as yield replacements for income-dependent investors.
All data is sourced from public filings and verified sources. Where data is unverified, it is explicitly flagged. All investments carry risk, including the potential loss of principal, and past performance is not indicative of future results. If you are making investment decisions involving CPF, SRS, or personal capital, please conduct your own due diligence or consult a MAS-licensed financial adviser before committing funds.
