Book Value Formula Of A Company

Patents goodwill and liabilities.

Book value formula of a company. 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 company s balance sheet. The formula is the company s assets minus liabilities intangible assets and the value of preferred stock.

Accumulated depreciation per year depreciation x total number of years. The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. The assets are listed first followed by the company s liabilities.

Below is the book value formula. To find the equity you should subtract the company s liabilities from its assets. When it reaches the end of its useful life the nbv should be equal to its salvage value.

Formula to calculate book value of a company. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Book value formula calculates the net asset of the company derived by total of assets minus the total liabilities.

Book value per share conclusion the book value per share is the minimum cash value of a company and its equity for common shareholders. Net book value original asset cost accumulated depreciation. 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.

Alternatively book value can be calculated as the sum total of the overall shareholder equity of the company. For the initial outlay of an investment. The difference between them is shareholder equity which is the part of the company that investors actually own.