Book Value Of Share Formula

To find the equity you should subtract the company s liabilities from its assets.

Book value of share formula. Roe is net income divided by stockholder s equity. Here is the formula. The book value of a share of stock is represented as book value per share.

Total equity preferred equity and total outstanding shares. 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. Book value may also be.

Bvps frac total shareholder equity preferred equity total outstanding. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Here s the formula of price to book value price to book value ratio market price per share book value per share.

So if the company has 10 000 000 in stockholders equity and 1 000 000 shares of stock outstanding the book value of each. So you have to deduct the total shareholder equity with preferred shares. Formula and calculation of p b ratio in this equation book value per share is calculated as follows.

Book value per share conclusion the book value per share is the minimum cash value of a company and its equity for common shareholders. This number is determined by dividing the company s total amount of stockholders equity by the number of outstanding shares of common stock. 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.

Now by using the below formula we can calculate book value per share. The book value per common share formula below is an accounting measure based on historical transactions. Net income on a per share basis is referred to as eps or earnings per share.