Book Value Formula Average

Depreciation periodic reduction in the value of the asset amortized as per standards.

Book value formula average. Other cost include impairment cost and related costs which directly affect the cost of the asset. You can use this book value calculator. Year 0 n b v.

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 may also be. Book value of assets formula.

It is equal to the price per share divided by the book value per share. Year 1 n b v. The formula for price to book value is the stock price per share divided by the book value per share.

To arrive at the book value simply subtract the depreciation to date from the cost. It s calculated by dividing the company s stock price per share by its book value per share bvps. For example a company has a p b of.

In the example above the asset s book value after 6 years would be 10 000 6000 or 4000. The price to tangible book value ptbv is a valuation ratio expressing the price of a security compared to its hard or tangible book value as reported in the company s balance sheet. Total value of the asset value at which the asset is purchased.

The stock price per share can be found as the amount listed as such through the secondary stock market. Year 2 years of investment 1 note. 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.