Book Value Per Share Formula India

For example suppose you have 1 000 shares of a company and the book value per share is rp5.

Book value per share formula india. 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. Total equity preferred equity and total outstanding shares. To find the equity you should subtract the company s liabilities from its assets.

The second way is to divide company s current stock price with its book value per share. The book value per share is calculated by dividing a company s total equity value by its total number of shares outstanding. The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders.

The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. That is the amount that ordinary shareholders will receive when the company is liquidated. With reference to the balance sheet above for xyz corporation let s assume that the current market price of the stock is 70 and book value per share is calculated as 10 then price to book value will be equal to 7.

Book value per share is the ratio of shareholders equity to the average ordinary shares common stock outstanding. Book value per share conclusion the book value per share is the minimum cash value of a company and its equity for common shareholders. 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.

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. What is the book value per share. Book value per share formula of utc company shareholders equity available to common stockholders number of common shares bvps 50 000 2000 25 per share.