Book Value Per Share Of Preferred Stock Formula

Book value per share total common stockholders equity preferred stock number of common shares.

Book value per share of preferred stock formula. While this is usually found on a balance sheet it is helpful to know how to retrieve this value yourself. Bvps frac total shareholder equity preferred equity total outstanding. Outstanding the formula requires you to know the company s total equity.

Net income on a per share basis is referred to as eps or earnings per share. Calculate book value per share from the following stockholders equity section of a company. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis.

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. Where vp is the value price of a share of preferred stock dp is the annual dividend per share of preferred stock kp is the required rate of return p is the par value per share of preferred stock and dp is the annual preferred dividend rate. Book value per share formula bvps dfrac total.

2 576 000 800 000 48 000 100 000 shares 1 728 000 100 000 shares 17 28 per share of common stock. If the value of bvps exceeds the market value per share the. Roe is net income divided by stockholder s equity.

The following formula can be used to determine value of a share of standard preferred stock. The preferred stock shown above in the stockholders equity section is cumulative and dividends amounting to 48 000 are in arrears. Of shares outstanding substituting the calculated values we get book value per share 193 000 60 000 3000 10 000 13 per share of common stock.

Calculate the total book value of a corporation s preferred stock by multiplying the book value of each share by the total number of shares outstanding. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. This figure represents the minimum value of a company s.