Book Value Formula Financial
Use the following formula to calculate the book value of an asset.
Book value formula financial. Book value formula calculates the net asset of the company derived by total of assets minus the total liabilities. In other words the book value of equity divided by the number of shares issued. It is calculated to make a sum of money borrowed and is due to be paid in the balance sheet.
Share price net book value per share. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes. To calculate the book value of a company you subtract the value of its total liabilities and intangible assets from the value of its total assets.
To calculate the book value of an asset you subtract its accumulated depreciation from its original cost. The company s balance sheet. Alternatively book value can be calculated as the sum total of the overall shareholder equity of the company.
The market to book ratio is calculated by dividing the current closing price of the stock by the most current quarter s book value per share. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. The book value figure is typically viewed in relation to the company s stock value market capitalization and is determined by taking the total value of a company s assets and subtracting any of the liabilities the company still owes.
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. Market to book ratio formula.
Market capitalization net book value. Where net book value total assets total liabilities. Below is the book value formula.