Book Value Per Share Formula Philippines
Two ways to increase book value per share.
Book value per share formula philippines. 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. Say on a stock exchange the price of a company s stock in the example above is idr3 per share. 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.
Total outstanding shares total number of shares issued shares as treasury stock. Total equity preferred equity and total outstanding shares. The formula for book value per share requires three variables.
Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. Now the shares will trade at whatever value the market gives them based on future expectations being good or bad and technical price action patterns the book value is only the current fundamental intrinsic value of the company based on. If the total value of a company is 10 million and it has 1 million shares of stock outstanding.
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. If there are 100 000 shares held by all investors then bvps is 5 pesos per share.
The book value per share is the minimum cash value of a company and its equity for common shareholders. You can divide this amount by the number of outstanding shares to determine the book value per share. Shareholders equity preferred shares.
Book value per share conclusion. How to increase book value per share. It breaks down the book value by dividing it with the total number of shares.