Book Value Per Common Share Equation
Book value indicates the difference between the total assets and the total liabilities and when the formula for book value per share is to divide this book value by the number of common shares.
Book value per common share equation. Calculate the book value per share for anand group of companies using the following extracts available. 1 776 000 100 000 shares 17 76 per share of common stock 2. 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.
This figure represents the minimum value of a company s. 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 per share shareholders equity preferred equity total outstanding common shares.
The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. The formula for book value per share requires three variables. Current assets 70 000.
To find the equity you should subtract the company s liabilities from its assets. Book value per share 25. Book value per share 1 50 000 25 000 5 000.
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. Book value per share of jagriti group of companies is 25. Book value per share formula example 3.
The book value per share is the minimum cash value of a company and its equity for common shareholders. 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 per share 1 25 000 5 000.