Book Value Concept Formula
For companies it is calculated as the original cost of the asset less accumulated depreciation and impairment costs.
Book value concept formula. Book value of assets is defined as the value of an asset in the books of records of a company or institution or an individual at any given instance. You can add the above said numbers to get the book value. Book value equity share capital retained earnings both these figures are available in the company s balance sheet.
Alternatively book value can be calculated as the sum total of the overall shareholder equity of the company. Net income on a per share basis is referred to as eps or earnings per share. Book value formula calculates the net asset of the company derived by total of assets minus the total liabilities.
Book value of asset definition. Roe is net income divided by stockholder s equity. As shown at the top of this page book value per share is expressing stockholder s equity on a per share basis.
Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. Book value may also be.