Book Value Per Share Is
Roe is net income divided by stockholder s equity.
Book value per share is. Consequently it is dangerous to compare the two measures. 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. Conversely the book value per share is an accounting measure that is not forward looking at all.
Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. What is the definition of book value per shares. The book value of a company stripped to basics is the value of the company the stockholders will own if the firm s.
The book value is the total equity or net asset value of a company. What does book value per share mean. Get all the key statistics for dbs d05 si including valuation measures fiscal year financial statistics trading records share statistics and more.
To find the equity you should subtract the company s liabilities from its assets. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. Since public companies are owned by shareholders this is also known as the total shareholders equity.
As shown at the top of this page book value per share is expressing stockholder s equity on a per share basis. What is book value per share bvps. To better understand book value per share it helps to break down each aspect of the ratio.
Book value per share is a fairly conservative way to measure a stock s value. Total equity preferred equity and total outstanding shares. The formula for book value per share requires three variables.