Book Value Per Share Calculation Formula
Market value per share is.
Book value per share calculation formula. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. 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.
Given stock holders equity 2000000 preferred stock 500000 total outstanding shares 300000. Total outstanding shares may change due to share buybacks or the issuance of new shares. Book value per share shareholders equity preferred equity total outstanding common shares.
Formula and calculation of p b ratio in this equation book value per share is calculated as follows. Calculate the book value per share of the international corporation. From the information we can calculate the book value per share as.
Investors need to look at both the book value and market value of the share. Roe is net income divided by stockholder s equity. The equity is the total number of assets after liabilities are subtracted.
Book value per share formula bvps dfrac total. While this is usually found on a balance sheet it is helpful to know how to retrieve this value yourself. While bvps considers the residual equity per share for a company s stock net asset value or nav is a per share value calculated for a mutual fund or an exchange traded fund or etf.
What is the book value per share bvps. Bvps 50 000 2000 25 per share. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.