Book Value Per Share Jfc
Book value per share is a ratio that compares the net asset value of a company minus preferred equity to the total number of common shares available on the market.
Book value per share jfc. Cash short term investment. 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. Start your free trial jollibee foods s book value per share for the quarter that ended in mar.
The regression analysis can be seen in table 2. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. The book value of that company would be calculated simply as 25 million 100m 75m.
The 2001 2010 study is shown in chart 2. For example a company that is currently trading for 20 but has a book value of 10 is selling at twice its equity. During the past 12 months jollibee foods s average book value per share growth rate was 59 90 per year.
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. If the value of bvps exceeds the market value per share the. Book value indicates the difference between the total assets and the total liabilities and when the formula for book value per share is to divide this book value by the number of common shares.
Book value per share 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. If there are 10 million shares outstanding each share would represent 2 50 of book value. The book value per share may be used by some investors to determine the equity in a company relative to the market value of the company which is the price of its stock.
Comparing bvps to a stock s market price could help value investors find opportunities. Sp500 growth rate price vs. This example is referred to.