Book Value Of Equity Formula
This figure represents the minimum value of a company s.
Book value of equity formula. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. Book value of equity also known as shareholder s equity is a firm s common equity that represents the amount available for distribution to shareholders. Book value of equity formula.
For example in apple s 1q report released february 1 2018 the company reported total assets of 406 794 billion and liabilities of 266 595 billion. The formula for book value per share book value of equity total number of outstanding shares. This means if the company dissolves the shareholders will receive an amount per share as per book value per share.
You can find these figures on the balance sheet. Book value per share represents equity of the firm on per share basis. Equity assets liabilities.
Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. The book value of equity is simply the difference between the total assets of a business and its total liabilities.