Pocket Option: How much does 1 stock cost and effective investment methods in 2024

Basic concepts of stocks and stock prices

Before diving into the question of “how much 1 stock costs,” we need to understand the nature of stocks. Stocks represent ownership in a company. When you buy stocks, you become a shareholder and have the right to receive dividends as well as vote at shareholder meetings.

The Vietnamese stock market has developed strongly over the past two decades. According to data from the State Securities Commission, as of September 2024, the number of securities accounts has exceeded 8.3 million, equivalent to about 8.5% of the country’s population. This figure shows the growing interest of Vietnamese people in the stock market.

Par value and market price: Two different concepts

When discussing “how much 1 stock costs,” we need to clearly distinguish between two important concepts: par value and market price.

In Vietnam, the standard par value of stock is 10,000 VND. However, the market price can be much higher (like VHM once reaching 120,000 VND) or lower than the par value (like many penny stocks at only 1,000-3,000 VND). This difference depends on business performance, growth prospects, and investor confidence.

Factors determining “how much 1 stock costs”

The question of “how much 1 stock costs” doesn’t have a fixed answer. Stock price is the result of supply and demand in the market and is influenced by many factors. Below are the main factors affecting stock prices in the Vietnamese market:

Impact of financial indicators on stock prices

To assess whether “how much 1 stock costs” is reasonable, professional investors often consider the following financial indicators:

Real example: As of October 2024, VNM stock has a P/E of around 17 times, higher than the average P/E of the food and beverage industry of 15 times. This may imply that VNM is valued higher than other companies in the same industry, but it also reflects investor confidence in the company’s growth prospects.

Characteristics of Vietnam’s stock market and impact on stock prices

To better understand “how much 1 stock costs” in the Vietnamese context, we need to grasp the unique characteristics of Vietnam’s stock market. These characteristics directly affect price formation and stock volatility.

An important characteristic of Vietnam’s stock market is the strong differentiation between stock groups. While blue-chips like VCB, VHM, FPT are usually valued highly with P/E of 15-20 times, many mid and small caps have P/E of only 5-8 times despite stable business results. This creates opportunities for value investment strategies, but also poses challenges in determining a reasonable “how much 1 stock costs”.

Professional stock valuation methods in Vietnam

When assessing “how much 1 stock costs,” Vietnamese analysts and stock valuation experts typically use the following methods:

Discounted Cash Flow (DCF) method

This is the most preferred method by financial experts to determine the intrinsic value of a stock. The method is based on the principle: the value of a business equals the sum of future cash flows discounted to present value.

With the DCF method, we can see that the fair value of VNM stock is about 91,000 VND (after adding net cash and deducting debt). Comparing this figure with the current market price (82,000 VND) helps investors assess whether the stock is overvalued or undervalued.

Besides DCF, other popular valuation methods include:

Smart stock investment strategies for Vietnamese investors

After understanding “how much 1 stock costs,” the next question is how to invest effectively? Below are investment strategies suitable for Vietnam’s market characteristics:

Expert Nguyen Minh Tuan, investment fund director in Ho Chi Minh City, shares: “Many Vietnamese investors make the mistake of only looking at the absolute price of a stock. In fact, a stock priced at 200,000 VND may be cheaper than a stock priced at 20,000 VND if considered in terms of P/E ratio and growth potential. The question is not ‘how much 1 stock costs’ but ‘what is the real value of that stock’.”

Some effective investment principles for Vietnamese investors:

Trading platforms and investment support tools in Vietnam

After understanding “how much 1 stock costs” and building an investment strategy, you need to choose a suitable trading platform. In Vietnam, investors have many options:

Stock investment process in Vietnam

To begin the stock investment journey, Vietnamese investors need to follow these steps:

If you’re just starting out, consider joining stock training courses or using a demo account (like the feature on Pocket Option) to get familiar before investing real money.

Pocket Option: Comprehensive solution for Vietnamese investors

In the journey to understand “how much 1 stock costs” and invest effectively, Pocket Option emerges as a comprehensive solution for Vietnamese investors. This platform has attracted thousands of Vietnamese investors thanks to its outstanding advantages:

Pocket Option also provides in-depth analysis reports on Vietnamese stocks, helping investors have a comprehensive view of the stock’s real value. This platform is particularly suitable for both new investors and experienced investors looking to diversify their portfolios.

Mr. Nguyen Van Minh, an individual investor in Hanoi shares: “Previously, I always wondered ‘how much 1 stock costs’ and didn’t know where to invest. Since using Pocket Option, I’ve accessed many analytical tools and in-depth reports, helping me better understand the real value of stocks and make smarter investment decisions.”

Conclusion: Smart investing in the Vietnamese stock market

The question “how much 1 stock costs” seems simple but requires deep understanding of the stock market and valuation methods. Through this article, we’ve seen that a stock’s price is not just a simple number but reflects investors’ expectations and assessments of business value.

The Vietnamese stock market with its unique characteristics requires investors to have appropriate knowledge, strategies, and tools. Combining fundamental and technical analysis, while maintaining investment discipline, will help you build an effective and sustainable investment portfolio.

With the support of modern platforms like Pocket Option, Vietnamese investors today have more advantages in accessing information, analyzing data, and executing transactions. Use these tools to make wise investment decisions that align with your long-term financial goals.

Remember, stock investment is not a quick path to wealth but a process of patient accumulation. Successful investors not only know “how much 1 stock costs” but also understand the real value behind that number, and more importantly, know when to buy and when to sell.