Book Value Per Share In Annual Report

The book value per share bvps is a ratio that weighs stockholders total equity against the number of shares outstanding.

Book value per share in annual report. If the value of bvps exceeds the market value per share the. Book value per share equals total assets minus total liabilities divided by total outstanding shares. How to calculate book value.

Item current year 3 months previous year 3 months current year to date previous year to date. For example a company has a p b of. Net income on a per share basis is referred to as eps or earnings per share.

This calculation is often modified to exclude intangible assets because they are not readily convertible to cash in which case the calculation is called the tangible book value per share. It is equal to the price per share divided by the book value per share. Item current year 3 months previous year 3 months current year to date previous year to date.

You can find these figures on the company s balance sheet. You can also determine the book value per share once you know the book value and shares outstanding. Book value total common shareholders equity preferred stock number of outstanding common shares.

Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. Learn more about how to calculate this ratio what it tells you and how investors use it to guide their decisions. Further book value per share bvps can be computed based upon the equity of the common shareholders in the company.

The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company. 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.