A company can have a $500 stock and be worth less than a company with a $20 stock. That sounds backwards. Until you remember something most people forget A share price isn’t a company’s value. Suppose Company A has 10 million shares × $500 = $5 billion market capitalization Company B has 1 billion shares × $20 = $20 billion market capitalization Company B’s stock is 96% cheaper per share. But the company itself is worth 4× more. This is why saying: “Stock A is expensive because it’s $500.” doesn’t tell you much. A company can split its shares 10-for-1 tomorrow. The price becomes $50. Nothing fundamental about the business changed. The market capitalization didn’t magically become one tenth as large. The ownership was simply divided into more pieces. Yet traders routinely anchor on the number printed beside the ticker. $20 feels cheap. $500 feels expensive. Neither tells you what the business is worth. The price of one piece tells you almost nothing without knowing how many pieces exist. Sometimes the first mistake in analyzing a market… is assuming the number you’re looking at is the number that matters.