Book Value Model Formula
The price to book value ratio p b formula is also referred to as a market to book ratio and measures the proportion between the market price for a share and the book value per share.
Book value model formula. Book value may also be. The net book value of a company shows the total book value of all its assets and liabilities. 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.
Book value per share conclusion. Book value total assets total liabilities. The company s balance sheet.
Book value per share total common stockholders equity preferred stock number of common shares. The formula is shown below. The book value per share is the minimum cash value of a company and its equity for common shareholders.
Total equity preferred equity and total outstanding shares. The formula for book value per share requires three variables. Net book value of a company.
To find the equity you should subtract the company s liabilities from its assets. 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.