Book Value Of Equity Per Share

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 of equity per share. The book value of equity is equal to total assets minus total liabilities preferred stocks and intangible assets. It is calculated by multiplying a company s share price by its number of shares outstanding whereas book value or shareholders equity is simply the difference between a company s assets and liabilities. The term book value of equity refers to a firm s or company s common equity which is the amount available that can be distributed among the shareholders and it is equal to the amount of assets shareholders own outright after all the liabilities have been paid off.

If the value of bvps exceeds the market value per share the. Pengertian book value per share nilai buku per saham dan rumusnya book value per share bvps atau dalam bahasa indonesia disebut dengan nilai buku per saham adalah rasio yang digunakan untuk membandingkan ekuitas pemegang saham dengan jumlah saham yang beredar. 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.

What does book value of equity mean. This means if the company dissolves the shareholders will receive an amount per share as per book value per share. Book value of equity per share abbreviated as bvps is a company s available equity to common shareholders apportioned by the number of outstanding common shares.

Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity. Book value per share represents equity of the firm on per share basis.

Book value is based on the amount the company has invested in its assets but not their current market value. This figure represents the minimum value of a company s. Dengan kata lain rasio book value per share ini digunakan untuk mengetahui berapa jumlah uang yang akan diterima oleh pemegang.

For the purpose of analysis the book value of equity is further divided by a total number of shares to make book value per share. Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company.