Book Value Per Common Share Formula
The formula for book value per share requires three variables.
Book value per common share formula. The book value per common share formula below is an accounting measure based on historical transactions. To find the equity you should subtract the company s liabilities from its assets. The book value per share is the minimum cash value of a company and its equity for common shareholders.
Bvps frac total shareholder equity preferred equity total outstanding. Book value per share conclusion. 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.
If the value of bvps exceeds the market value per share the. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.