Equity Book Value Per Share Formula

The equity is the total number of assets after liabilities are subtracted.

Equity book value per share formula. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. 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. 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.

Outstanding the formula requires you to know the company s total equity. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes. Book value per share formula bvps dfrac total.

Book value per share formula of utc company shareholders equity available to common stockholders number of common shares. While this is usually found on a balance sheet it is helpful to know how to retrieve this value yourself. If the investors can find out the book value of common stocks she would be able to figure out whether the market value of the share is worth it.

Investors need to look at both the book value and market value of the share. Bvps 50 000 2000 25 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.