Formula Book Value Of Equity
Book value of equity formula.
Formula book value of equity. Book value is the amount that investors would theoretically receive if all company liabilities were subtracted from all company assets. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. This figure represents the minimum value of a company s.
This means if the company dissolves the shareholders will receive an amount per share as per book value per share. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes. Using the accounting equation the book value of equity formula can be stated as follows.
Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. Book value per share represents equity of the firm on per share basis. The formula for book value per share book value of equity total number of outstanding shares.