3/22/2023 0 Comments Penny stock profit calculator![]() If you are struggling to choose which industry your stock is in, you can go to Yahoo Finance, enter your stock, and click on the “Profile” link under the Company tab to see which industry Yahoo Finance classifies the stock as.Just change the number of shares in the “# of Outstanding Shares” field. You can use this tool to test the effects of reverse splits, splits, share buybacks/retirements, etc.The “Fair Value” Price Per Share field will indicate how much value should be added to the price- per-share because of the deal. For example, if a company has a deal that will bring in $5 million in net profit, plug that into the equation. The underlying stock is also trading with a penny spread, but in percentage terms, the spread is much smaller at 0.032 because of the higher price of the stock. You can use this tool to determine how new deals should affect a company’s share price.If you have, say, 1,000 to invest right now, include that amount here. If you want to use this tool to account for growth, enter a higher value in the Net Income field How to use NerdWallet’s investment return calculator: Enter an initial investment.The method behind this valuation tactic is fully explained in this post.This valuation method only accounts for profitability and ignores factors such as assets and liabilities.This is only one method for valuation and the “Fair Value” Price Per Share will not always be reached.Against the Trend: This pattern plays out very well with penny stocks. For instance, if a penny stock closes at 1.50, then opens the next day at 1.95, it leaves a gap of 45 cents. This tool only works for companies with positive net incomes Gapping Stocks: When shares open higher (or lower) than where they traded the day before, this is known as gapping. ![]() As per the above, your capital gains amount to 8,000. Fill out the first 4 fields in the tool below and get the “Fair Value” Price Per Share Multiply that by 1,000 shares and your total profit is 8,000. Whether you are average down or average up, you can use the stock average down calculator to calculate the average price you paid for your shares.Get Industry Average P/E ratio from Yahoo Finance Site (Choose the industry that best matches the stock’s business model) To determine your taxable profit and give a general idea of what you could be adding to your income, first ask your tax guy, then check out this formula: Sales Proceeds Basis Taxable Profit or Deductible Loss Something else to know is that your sale proceeds can also be lowered by commissions paid to the broker.Even if that stock you bought for 0.10 is now worth 0. Get Current Share Price, # of Outstanding Shares, and Yearly Net Income (Net Profit) from OTC Markets Website Trading volumes in penny stocks are very low, with few buyers or market makers.
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