Book Value Per Share Youtube

Market value per share vs.

Book value per share youtube. This video explains the book value and market value concepts and i. 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. Generally for value investors p b ratios carry a great significance as we like the price of a stock to be well supported by the value on the books.

In this video on book value per share of common stock we look at the book value per share formula and calculate bvps along with practical examples. For example a company that is currently trading for 20 but has a book value of 10 is selling at twice its equity. The formula for calculating the book value per share of common stock is.

Comparing the stock price to the book value per share is done using the p b ratio or price to book ratio. Book value per share stockholder s equity total number of outstanding common stock. The market value per share represents the current price of a company s shares and it is the price that investors are willing to pay for common stocks.

Visit http bit ly cafinalsfmnewcourse for more demos book value per share and price to book value ratio p b ratio explained in hindi ii ca final sfm new. Book value per share. The book value per share is calculated using historical costs but the market value per share is a forward looking metric that takes into account a company s earning power in the future.

For example if there are 10 000 outstanding common shares of a company and each share has a par value of 10 then the value of outstanding share amounts to 100 000. This video explains how to calculate the book value per share given shares outstanding and how to calculate the price to book ratio given the market capitali. In this video we are showcasing the use of book value per share which is the equity available to common shareholders divided by the number of outstanding sha.