Book Value Per Preferred Share Formula
Calculate the total book value of a corporation s preferred stock by multiplying the book value of each share by the total number of shares outstanding.
Book value per preferred share formula. Alternatively book value can be calculated as the sum total of the overall shareholder equity of the company. 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. While this is usually found on a balance sheet it is helpful to know how to retrieve this value yourself.
Book value per share of preferred stock. 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. Outstanding the formula requires you to know the company s total equity.
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. In other words divide the applicable equity by the number of shares. The book value per common share formula below is an accounting measure based on historical transactions.
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 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. Formula to calculate book value of a company book value formula calculates the net asset of the company derived by total of assets minus the total liabilities.
The book value per preferred share is calculated by dividing the call price or par valueplus the cumulative dividends in arrears by the number of outstanding preferred shares. Where l is the liquidation value of preferred stock d is the amount of preferred dividends in arrears and s is the number of preferred shares outstanding. Bvps frac total shareholder equity preferred equity total outstanding.
Book value per share total common stockholders equity preferred stock number of common shares.