Book Value Per Share Net Asset Value

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 net asset value. The information needed to calculate bvps is found on a company s balance sheet. 162 582 totals 300 000 600 082 shares outstanding 4 000. Net book value nbv refers to a company s assets or how the assets are recorded by the accountant.

As explained by investopedia net asset value per share navps refers to the value of a single unit or share or a fund. Comparing bvps to a stock s market price could help value investors find opportunities. Of the asset being subtracted from the asset s original cost.

Book value per share is computed as net assets divided by outstanding stock at the end of the year. The differences between a book value per share calculation and a net asset value per share calculation are fairly small but the difference in valuation can be quite large when comparing these metrics amongst the reit prices in question. The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity.

Table 3 14 british airways group net asset value per share 2006 12 174 book value of assets million 10 100 total creditors million 2 074 net book value of assets million 1 130 90 shares issued at end of year million 1 84 net asset value per share 3 53 market price per share 1 92 ratio of market to book value operating cash flow multiples an operating cash flow multiple. It is calculated by. Net asset value per share navps is an expression for net asset value that represents the value per share of a mutual fund an exchange traded fund etf or a closed end fund.

The net asset value per share can be defined as an expression for net asset value that indicates the value per share for a fund exchange traded mutual and closed end or a company. The computation becomes more complicated if a company has preferred stock. For the average investor my take is you probably don t need to worry about these details.

The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Stockholders equity preferred common preferred stock 5 300 000 common stock 400 000 excess of issue price over par of common stock 37 500 retained earnings. Book value per common share also known as book value per equity of share or bvps is used to evaluate the stock price of an individual company whereas net asset value or nav is used as a.