Book Per Share Formula
The book value per common share formula below is an accounting measure based on historical transactions.
Book per share formula. To find the equity you should subtract the company s liabilities from its assets. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. If the value of bvps exceeds the market value per share the.
This shows anand group of a company have the book value per share of 2. The book value per share is the minimum cash value of a company and its equity for common shareholders. The formula for book value per share requires three variables.
By using the book value per share formula. Book value per share shareholders equity preferred equity total outstanding common shares. The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders.
Book value indicates the difference between the total assets and the total liabilities and when the formula for book value per share is to divide this book value by the number of common shares. The book value per share is calculated by dividing a company s total equity value by its total number of shares outstanding. The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity.
Book value per share 25 000 000 5 000 000 10 000 000. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. Total equity preferred equity and total outstanding shares.
The formula for book value per share is to subtract preferred stock from stockholders equity and divide by the average number of shares outstanding. This figure represents the minimum value of a company s. When compared to the current market value per share the book value per share can provide information on how a company s stock is valued.