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

10 April 2025
9 min to read
How Much is 1 Share Worth: Smart Investment Tips in Vietnam in 2024

Understanding "how much 1 stock costs" is the first step to confidently participating in the Vietnamese stock market. This article will help you master stock valuation methods, analyze factors affecting prices, and build smart investment strategies suitable for current Vietnamese market conditions

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.

Concept Definition Real examples in Vietnam
Par value The nominal value of a stock at initial issuance 10,000 VND (standard par value in Vietnam)
Market price Actual trading price on the stock exchange VCB: 94,000 VND, FPT: 115,000 VND, MWG: 71,000 VND (10/2024)
Difference The gap between market price and par value VIC: 43,000 VND (4.3 times lower than par value)

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:

  • Business results and actual profits of the company
  • Short-term and long-term growth prospects
  • Dividend policy and payout ratio
  • Vietnam’s macroeconomic situation (interest rates, exchange rates, inflation)
  • Money flow and market liquidity
  • Investor psychology and market trends
  • Political fluctuations and legal policies

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:

Indicator Meaning Average value in Vietnamese stock market (2024)
P/E (Price-to-Earnings) Compares stock price with earnings per share VN-Index: 16.5 times (banking sector: 12-14 times)
P/B (Price-to-Book) Compares stock price with book value VN-Index: 2.1 times (real estate sector: 1.8-2.5 times)
EV/EBITDA Enterprise value compared to earnings before tax, interest, and depreciation Industrial: 7-9 times, Consumer: 10-12 times
Dividend yield Annual dividend/Stock price Electricity sector: 5-7%, Banking: 1-3%

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.

Characteristic Details Impact on stock prices
Size and liquidity Market capitalization: about 7,500 trillion VND (2024) Stronger price fluctuations for small-cap stocks
Investor structure Individual investors account for 85% of transactions Price fluctuations often follow crowd psychology, less on fundamentals
Trading band ±7% on HOSE, ±10% on HNX, ±15% on UPCoM Limits price fluctuations, creates buying/selling pressure at ceiling/floor prices
Trading lot regulations Standard lot: 100 shares on HOSE Affects liquidity and accessibility for small investors

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.

Implementation steps Example application for VNM stock
1. Forecast free cash flow (FCF) for 5-10 years Revenue increases 8%/year, stable profit margin 20%, FCF about 6,500 billion/year
2. Determine discount rate (WACC) WACC = 12% (based on risk-free rate 5%, beta 0.8, risk premium 8%)
3. Calculate terminal value Long-term growth rate 3%, Terminal Value = 108,333 billion VND
4. Calculate total present value of cash flow NPV of 5-year FCF + NPV of Terminal Value = 75,000 billion VND
5. Divide by number of outstanding shares 75,000 billion / 1.74 billion shares = 43,103 VND/share

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:

  • Comparative valuation P/E, P/B: Comparing valuation ratios with industry average and history
  • Dividend Discount Model (DDM): Suitable for stocks that pay regular dividends like REE, PC1
  • Asset-based valuation: Applied to real estate, resource companies like VIC, KDH
  • Residual income valuation model: Suitable for the banking sector like VCB, TCB

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:

Strategy Core principles Application examples in Vietnam
Value investing Finding stocks undervalued below their intrinsic value HPG (2023): P/E 8x, much lower than global steel industry average
Growth investing Prioritizing companies with high, sustainable growth rates FPT, MWG: Profit growth 20-25%/year for 5 consecutive years
Sector investing Focusing on sectors with growth potential Banking (2021-2022), Electricity/Energy (2023-2024)
Dividend investing Choosing stocks with high, stable dividend yields POW, REE: Dividend yield 5-7%/year, paid regularly

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:

  • Portfolio diversification: Allocate capital to 5-10 stocks in different sectors
  • Investment planning: Determine objectives, timeframe, and risk appetite before buying
  • Discipline: Set reasonable buying and selling prices, don’t let emotions control decisions
  • Thorough research: Analyze financial reports, industry prospects, and macroeconomics
  • Long-term investment: Minimum 1-3 years to benefit from business growth

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:

Platform type Advantages Average transaction fee
Traditional securities companies In-depth consulting, quality analysis reports 0.15-0.25% of transaction value
Online trading applications Convenient, fast trading, many chart tools 0.10-0.20% of transaction value
International investment platforms like Pocket Option Diverse products, user-friendly interface, multilingual support Competitive fees, many promotional programs
ETFs and open-end funds Diversified investment, professionally managed Management fee: 0.5-1.5%/year

Stock investment process in Vietnam

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

  • Step 1: Prepare personal documents (ID card, contact information, tax code)
  • Step 2: Open a securities account at a securities company or platform like Pocket Option
  • Step 3: Link bank account for deposits/withdrawals
  • Step 4: Research and select stocks based on investment strategy
  • Step 5: Execute buy orders with appropriate volume (usually from 100 shares and up)
  • Step 6: Monitor portfolio and adjust when necessary

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 features Benefits for Vietnamese investors
Intuitive Vietnamese interface, easy to use Reduces language barriers, helps all investors access easily
Support for diverse investment products Not just Vietnamese stocks but also international stocks, ETFs, bonds
Professional technical analysis tools Japanese candlestick charts, 50+ technical indicators, chart drawing tools
Demo account with 10,000 USD virtual money Practice investment strategies risk-free before using real money
Investment academy with Vietnamese materials Enhance knowledge from basic to advanced about the stock market

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.

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FAQ

How much does 1 stock cost in Vietnam currently?

In Vietnam, the price of 1 stock varies greatly, from a few thousand dong to hundreds of thousands of dong. The standard par value is 10,000 VND, but the market price depends on the business performance and prospects of the company. For instance, in October 2024, VCB stock traded around 94,000 VND, FPT around 115,000 VND, while some penny stocks were priced at only 2,000-5,000 VND.

How do I know if a stock is reasonably priced?

To evaluate a reasonable stock price, you should use valuation methods like DCF (Discounted Cash Flow), compare P/E, P/B ratios with industry averages, and analyze the company's business results. A stock has a reasonable price when its P/E is equivalent to or lower than the industry average, the business has stable growth, and a sustainable business model.

What advantages does Pocket Option have compared to other trading platforms in Vietnam?

Pocket Option stands out with its user-friendly Vietnamese interface, competitive transaction fees, and many professional analytical tools. The platform provides a demo account for free practice, diverse investment products from Vietnamese stocks to international markets, and a rich learning library. Especially, Pocket Option has a 24/7 Vietnamese-speaking customer support team and regular analysis reports on the Vietnamese market.

How much money should I start investing with in the Vietnamese stock market?

With the regulation of trading in lots of 100 shares on HOSE, the minimum amount depends on the stock price you choose. However, experts often recommend starting with 20-50 million VND to build a diverse portfolio and absorb transaction costs. If you don't have much experience, you should start with a small amount, about 10-20 million VND, and gradually increase as you accumulate enough experience.

What investment strategies should individual investors apply in the Vietnamese market?

For individual investors in Vietnam, value investing strategies combined with investing in leading companies often yield good results. Focus on businesses with easy-to-understand business models, healthy finances, and sustainable competitive advantages. Diversify your portfolio with 5-10 stocks from different sectors, while maintaining a cash ratio of 20-30% to take advantage of opportunities when the market corrects.

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