Book Value Formula Example

Company qpr has stockholders equity of 200 000 and 50 000 shares outstanding.

Book value formula example. Total number of outstanding shares. Is a ratio that compares the net book value of a company with its shares outstanding. Book value per share will be bvps 495 61 book value calculator.

Book value per share. Book value total assets total liabilities preferred stock intangible assets or book value shareholder s equity broadly equity share capital reserves and surpluses. Or p b ratio 105 84 5 4 1 25.

Price to book value ratio of citigroup. Shareholders equity preferred shares. Outstanding the formula requires you to know the company s total equity.

You can use this book value calculator. In the above example we know both. 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.

Stock 1 has a high market capitalization relative to its net book value of assets so its price to book ratio is 3 9x. Book value per share formula bvps dfrac total. If the value of bvps exceeds the market value per share the.

Using the p b ratio formula we get p b ratio formula market price per share book value per share. To find out the p b ratio formula we need the market price per share and book value per share. Calculate the book value per share.