Book Value Per Share Vs Book Value
Book value per share while bvps is calculated using historical costs the market value per share is a forward looking metric that takes into account a company s future.
Book value per share vs book value. The price to book p b ratio is a popular way to compare market value and book value. Market value per share vs. What is the book value per share bvps.
To express this number in terms of book. It is equal to the price per share divided by the book value per share. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.
Admittedly the two terms sound similar. For example if a company has 23 2 billion in assets and 19 3 billion in liabilities the book value of the company would be the difference 3 9 billion.