Book Value Equity Formula

Book value per share will be bvps 495 61 book value calculator.

Book value equity formula. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes. Capital contributed by owners. Book value of equity formula.

Book value of equity total assets total liabilities. Book value of equity calculation. 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.

From this understanding we can now derive the formula of the book value of equity as follows. The book value of equity is simply the difference between the total assets of a business and its total liabilities. 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.

You can use this book value calculator. Let s understand each component for precise calculations. Using the accounting equation the book value of equity formula can be stated as follows.

For example in apple s 1q report released february 1 2018 the company reported total assets of 406 794 billion and liabilities of 266 595 billion. You can find these figures on the balance sheet. It is calculated by multiplying a company s share price by its number of shares outstanding whereas book value or shareholders equity is simply the difference between a company s assets and liabilities.

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. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. The book value of equity is equal to total assets minus total liabilities preferred stocks and intangible assets.