Calculation Of Book Value Of Equity Shares

Book value per share will be bvps 495 61 book value calculator.

Calculation of book value of equity shares. The book value of equity is equal to total assets minus total liabilities preferred stocks and intangible assets. It can be useful to compare the market price of shares to the book value. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares.

As shown at the top of this page book value per share is expressing stockholder s equity on a per share basis. This figure represents the minimum value of a company s. It is calculated by multiplying a company s share price by its number of shares outstanding whereas book value or shareholders equity is simply the difference between a company s assets and liabilities.

Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes. Therefore the calculation of book value per share will be as follows bvps total common shareholders equity preferred stock number of outstanding common shares 2 93 491 00 cr 592 18 cr. For healthy companies equity value far exceeds book value as the market value of the company s shares appreciates over the years.

Book value per share total equity preferred shares average of outstanding ordinary shares from the equation above this metric only measures the value of ordinary shares. The formula for calculating book value per share is the total common stockholders equity less the preferred stock divided by the number of common shares of the company. Book value may also be.

The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. You can use this book value calculator. Net income on a per share basis is referred to as eps or earnings per share.

Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. So you have to deduct the total shareholder equity with preferred shares. Suppose a company has a book value of 35 million and there are 1 4 million common shares outstanding.