Iggy’s Journal: Is a S$0.20 Share Cheaper Than a S$20 Share? Three Questions About Price and Size
Iggy’s Journal: Is a S$0.20 Share Cheaper Than a S$20 Share? Three Questions About Price and Size
Wed 21 Oct 2026 | Morning
The Numbers
In the episode, one company trades at S$0.20 a share and is worth S$2 billion. The other trades at S$20 a share and is worth S$1 billion. The S$20 share costs 100 times as much, and its company is half the size.
That works out to about 10 billion shares for the first company and about 50 million for the second, a difference of 200 times in share count. On earnings, the S$0.20 share costs 20 times what it earns, and the S$20 share costs 10 times. The share price shows the cost of one slice, and the number of shares shows how large the whole company is.
My Personal Take
The share price is the first number on the screen and the least useful one for comparing two companies. It is the same mistake I flagged on Monday with the Mi Material offer: the headline figure is not the one the company keeps. I treat the price as the cost of one slice and look for the size of the whole thing next. Then I check what each share earns and what it pays. A low price does not make a fall smaller, and it does not make doubling easier. Both the S$0.20 share and the S$20 share can lose half their value from where they start. The episode puts the two companies side by side on those three questions and leaves the verdict out.
📺 YouTube: https://youtu.be/8ZKCfrxVBfw
Cheers, Iggy 🦖
Not financial advice. Iggy’s Forensic Compliance Standards apply.
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