Book Value Per Share Formula Example
Book value per share shareholders equity preferred equity total outstanding common shares.
Book value per share formula example. Book value per share 1 50 000 25 000 5 000. Outstanding the formula requires you to know the company s total equity. Using the previous example assume that the company repurchases 500 000 common stocks from its shareholders.
Book value per share 25. It will reduce the current shares outstanding to 2 5 million 3 000 000 500 000. Book value per share of jagriti group of companies is 25.
Shareholders equity preferred shares. One of the main ways of increasing the book value per share is to buy back common stocks from shareholders. Book value per share 1 25 000 5 000.
Total number of outstanding shares. Book value per share formula example 3. Book value per share.