2) Fundamental Analysis
Ever wonder why BBCA's price is in the thousands but GOTO is only hundreds? One answer lies in shares outstanding. The more shares outstanding, the 'thinner' your ownership per share. This is a foundational concept to understand before reading any financial metric.
Shares Outstanding is the total number of shares held by all investors, including institutional and retail shareholders. This number is crucial because it's the denominator for calculating EPS, market cap, and nearly every per-share metric.
Imagine you and friends pool money to buy a boarding house. If only 4 people chip in, each owns 25%. But if 100 people chip in, each owns just 1%. The house is the same, the value is the same — but the portion per person differs wildly. Shares outstanding is the number of 'people chipping in'.
BBCA has around 24 billion shares outstanding. GOTO has over 100 billion. Even though their market caps can be similar, GOTO's per-share price is much cheaper because the 'pie' is cut into more pieces. Don't be fooled by a cheap price — look at market cap for a fair comparison.
After understanding this concept, apply it in tools so decisions become more objective and measurable.
Open Stock ListWhat's the difference between outstanding and treasury shares?
Outstanding shares are held by the public and institutions. Treasury shares are bought back by the company and are not counted in EPS calculations.
