In words, this means that you multiply each price you paid by the number of shares you bought at that price. Then, add up all of these results. Finally, divide by the total number of shares you purchased. This may sound a little complicated, so let’s look at an example to illustrate how it works.

If you sell your holdings and then buy it back the same day, the difference will be considered an intraday profit or loss and your holdings buy average will remain unaffected. So the buy average of ITC that would display in your holdings is = Rs 261 i.e (30*260) + (30*256) + (20*270) / (50+30-20+20).

How do you find initial purchase price?

This calculation helps you to find the original price after a percentage decrease.

1. Subtract the discount from 100 to get the percentage of the original price.
2. Multiply the final price by 100.
3. Divide by the percentage in Step One.

How can I find out the sale price of my stock?

If you know a share’s sale price but not its purchase price, here are four options for how to report the cost basis of the transaction. If the share was issued by a publicly traded company (U.S. or foreign), look up the historical rate for the shares online and report the share price at the time when you purchased the shares.

What happens when you buy a value stock?

The value stock is purchased at a bargain price as the situation of the company in the market is going down, and the company is unable to perform to its best. As the market understands the potential of the stock, the price of the share will increase, and investors will able to earn substantial returns.

How is the rate of purchase of stock determined?

As the goods entered at first are issued at first and the most recent purchases remain in stock at the rate of the latest consignment so purchased. Hence, under this method, stock is valued at the rate at which the most recent purchases were made. 4.

How to calculate the purchase price of a company?

Such a transaction implies an EBITDA multiple of 6 times. In Exhibit, 1 we calculate an estimated purchase price due to the seller by deducting debt and adding cash shown in the balance sheet presented in Exhibit 2. Given a cash balance of $1 million and total debt of $10 million, a purchase price of $21 million is estimated.