Book Value Equation Formula

Net book value original asset cost accumulated depreciation.

Book value equation formula. Other cost include impairment cost and related costs. Sample calculation of net book value. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes.

In this equation book value per share is calculated as follows. Roe is net income divided by stockholder s equity. The formula for calculating book value per share is the total common stockholders equity less the preferred stock divided by the number of common shares of the company.

Depreciation periodic reduction in the value of the asset amortized as per standards. Net income on a per share basis is referred to as eps or earnings per share. Total value of the asset value at which the asset is purchased.

When it reaches the end of its useful life the nbv should be equal to its salvage value. The formula for calculating nbv is as follows. You can use this book value calculator.

As shown at the top of this page book value per share is expressing stockholder s equity on a per share basis. 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. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.

The book value per share is considered to be the total equity for common stockholders which can be found on a company s balance sheet. Therefore the calculation of book value per share will be as follows bvps total common shareholders equity preferred stock number of outstanding common shares 2 93 491 00 cr 592 18 cr. The stock price per share can be found as the amount listed as such through the secondary stock market.