Book Value Per Share Example India

Book value per share can be defined as the amount of equity available to shareholders expressed on a per common share basis.

Book value per share example india. State bank of india s current price is 192 85. Let s take a simple book value per share example utc company has the following information total assets at the end of the year 150 000. Our job is to find out the book value of utc company.

For example a company that is currently trading for 20 but has a book value of 10 is selling at twice its equity. Now let s suppose that 1 million shares of company s common stock are outstanding and equity is 10 million then book value per share is 10 10 million 1 million. It will reduce the current shares outstanding to 2 5 million 3 000 000 500 000.

Book value is a company s assets minus its liabilities. You can apply the same method to get the book value growth rate using book value per share data. Book value per share bvps is a measure of value of a company s common share based on book value of the shareholders equity of the company.

Book value per share for valuation. During the past 13 years the highest 3 year average book value per share growth rate of state bank of india was 19 70 per year. And the median was 11 30 per year.

India international marketing centre book value. It is the amount that shareholders would receive if the company dissolves realizes cash equal to the book value of its assets and pays liabilities at their book value. Preferred stock 20 000.

The revised bvps will be as follows. As a common shareholder she wants to know the minimum equity that she would have a claim on. This example is referred to as price to book value p b in which book value per share is used in the denominator.