SZL 0.00% $24.35 sezzle inc.

I've never understood why people compare share prices of...

  1. 830 Posts.
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    I've never understood why people compare share prices of different companies. Wouldn't it only be relevant if they have the same number of shares on issue?

    SEZL has a market cap of 221 million USD (@ price of $42.73), with 5.7 million shares issued.
    AFRM has a market cap of 12.89 billion USD (@ price of $38.96), with 242.12 million shares issued.

    Market capitalisation is simply current market price multiplied by the number of shares issued.

    For there to be any sensible comparison of the share price as an indicator of value or performance, you would need to adjust one by the same ratio difference of the two shares on issue.

    AFRM has 42.47 times as many shares on issue as SEZL, so if you multiple the SEZL share price by 42.47 ($38.96 * 42.47) you get:

    $1,654.91.

    If the SEZL share price was $1,655.91 then it would have the same value as AFRM... which is only useful if:
    1. You think SEZL will become as or more valuable as AFRM
    - and -
    2. You think AFRM is not overpriced

    Personally, I prefer to predict a future share price by looking at the current price and the growth rate - 221 million market cap now, but it's possible that over a 5 year period that cap will be US $1B and so without factoring in dilution, splits or consolidations which may occur in that time, in 5 years, a price of $190 USD achievable.
 
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