Book Value Formula Calculator

The price to book ratio formula sometimes referred to as the market to book ratio is used to compare a company s net assets available to common shareholders relative to the sale price of its stock.

Book value formula calculator. Formula to calculate book value of a company. Book value per share rs 30 per share. There are various equations for calculating book value.

Alternatively book value can be calculated as the sum total of the overall shareholder equity of the company. Book value per share book value of equity total shares outstanding. It shows the current position of the asset base after liabilities are taken into account.

Book value is the net value of assets within a company. In the uk book value is also known as net asset value. Price to book value 3 33.

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. Price to book value is calculated as. Suppose a company has a book value of 35 million and there are 1 4 million common shares outstanding.

Book value may also be. As shown at the top of this page book value per share is expressing stockholder s equity on a per share basis. It can be useful to compare the market price of shares to the book value.

Book value formula calculates the net asset of the company derived by total of assets minus the total liabilities. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. To compute for book value four essential parameters are needed and these parameters are present amount or worth p salvage value s total estimated life of the asset n and number of years of the asset t.