Book Value Of Equity Per Share Formula
To find the equity you should subtract the company s liabilities from its assets.
Book value of equity per share formula. Total equity preferred equity and total outstanding shares. 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 formula for book value per share requires three variables. This figure represents the minimum value of a company s. Book value per share conclusion the book value per share is the minimum cash value of a company and its equity for common shareholders.
The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. If the value of bvps exceeds the market value per share the. 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.