Book Value Per Share Equation
Roe is net income divided by stockholder s equity.
Book value per share equation. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. 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. Net income on a per share basis is referred to as eps or earnings per share.
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. If the value of bvps exceeds the market value per share the.