Calculating Book Value Per Share From Balance Sheet

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. How do you calculate book value per share. In our equation the market value is 86 7 billion which we divide by the 42 5 billion shareholder equity line.

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Book value per share of jagriti group of companies is 47 14.

Calculating book value per share from balance sheet. Its balance sheet it is the value that company s shareholders would receive after company liquidate all its assets and satisfy all its short term and long term liabilities. While considering book value per share as one of the criteria for investing decision its suggested to look for the actual valuation of assets in the balance sheet. Hpq is worth 86 7 billion.

Book value per share common shareholders equity outstanding common stock rs. Calculate the firm s stock price book value from the balance sheet. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.

Divide the firm s total common stockholder s equity by the average number of common shares outstanding. Book value per share bvps is a measure of value of a company s common share based on book value of the shareholders equity of the company. Book value per share shareholder s equity preferred equity total outstanding common shares.

The book value per share can be used for calculating the per share value of a company. Calculating book value example 2. A land may be at cost on the balance sheet whereas market price would be.

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. Say that hewlett packard nyse. Now by using the below formula we can calculate book value per share.

The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. Book value per share 2 10 000 45 000 3500. The formula for calculating the book value per share of common stock is.