Book Equity Per Share Formula

Net income on a per share basis is referred to as eps or earnings per share.

Book equity per share formula. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes. Outstanding the formula requires you to know the company s total equity. Roe is net income divided by stockholder s equity.

Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. Investors need to look at both the book value and market value of the share.

Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. Book value per share formula bvps dfrac total. Calculating book value of equity per share the book value of equity per share is calculated by linking the original value of the common stock of a firm adjusted for any outflow and inflow modifiers to the amount of outstanding shares.

If the investors can find out the book value of common stocks she would be able to figure out whether the market value of the share is worth it. Bvps 50 000 2000 25 per share. This value is calculated as.

Book value per share formula of utc company shareholders equity available to common stockholders number of common shares. This figure represents the minimum value of a company s.