Calculator For Book Value

The image above represents book value.

Calculator for book value. Then determine the asset s accumulated depreciation which is how much value the asset loses over time. To calculate book value of an asset first find its original cost which is the price paid to get the asset. This is done by comparing the book value figure with the market value of the company.

The formula for price to book value is the stock price per share divided by the book value per share. You can use this book value calculator. Consequently higher book value represents a greater return for the investors and shareholders.

The formula for calculating book value. Book value per share will be bvps 495 61 book value calculator. 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 of equity represents the fund that belongs to the equity shareholders and is available for the distribution to the shareholders and it is calculated as the net amount remaining after the deduction of all the liabilities of the company from its total assets. Should the company dissolve the book value per. The book value per share is a measure of a stocks value relative to the total common stockholder s equity.

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. 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. As such the larger the number of commons stocks there are the lower the value of the book value per share.

The value of the assets is largely dependent on the book value. 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. To compute for book value four essential parameters are needed and these parameters are present amount or worth p salvage value s total estimated life of the asset n and number of years of the asset t.