Book Value Per Share Sec
If you buy a share at rs 100 and its book value is rs 120 then the share is considered a value buy.
Book value per share sec. It is equal to the price per share divided by the book value per share. Diluted book value per common share is considered by the company s management to be an appropriate measure of its returns to common shareholders as the company believes growth in its book value on a diluted basis. 1 per instruction 2 to item 2 02 of form 8 k the requirements of s k 10 e 1 i apply to disclosures furnished or filed under item 2 02 of form 8 k.
Accordingly the pro forma net tangible book value per share at july 31 was 0 72 or net tangible book value of 28 600 000 divided by 39 838 670 shares. The staff has allowed tangible book value per share calculations made with and without those assets with appropriate explanation. The book value per share bvps is a ratio that weighs stockholders total equity against the number of shares outstanding.
When pro forma net tangible book value per share is adjusted for the additional 3 332 million shares the number of shares in the denominator is 39 838 670 i e 36 506 670 plus 3 332 000. For example a company has a p b of. Financial analysts usually compare the book value.
In this case the shares outstanding number is stated at 3 36 billion so our bvps number is 71 3 billion divided by 3 36 billion which equals 21 22. 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. Book value per share basically tells us the worth of each share.
Each share of common stock has a book value. In other words this measures a company s total assets minus its total liabilities on a per share basis. Tangible book value per share tbvps is a method by which a company s value is determined on a per share basis by measuring its equity without the inclusion of any intangible assets.
In financial jargon book value per share is the value of total assets divided by total number of outstanding shares in the market. As of september 30 2013 we had a net tangible book value of us 263 8 million corresponding to a net tangible book value of us 6 02 per common share.