Book Value Per Share Formula

Total equity preferred equity and total outstanding shares.

Book value per share formula. 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. Book value per share. That is the amount that ordinary shareholders will receive when the company is liquidated.

Total outstanding shares total number of shares issued shares as treasury stock. The formula for book value per share requires three variables. Book value per share is determined by dividing common shareholders equity by total number of outstanding shares.

The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. For example suppose you have 1 000 shares of a company and the book value per share is rp5. Shareholders equity preferred shares.

What is the book value per share. Total number of outstanding shares. 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. Book value per share is the ratio of shareholders equity to the average ordinary shares common stock outstanding. Bvps frac total shareholder equity preferred equity total outstanding.