Formula For Book Value Per Common Share

Book value per share conclusion the book value per share is the minimum cash value of a company and its equity for common shareholders.

Formula for book value per common share. Total number of outstanding shares. Bvps frac total shareholder equity preferred equity total outstanding. Shareholders equity preferred shares.

Book value per share total common stockholders equity preferred stock number of common shares. To find the equity you should subtract the company s liabilities from its assets. Book value indicates the difference between the total assets and the total liabilities and when the formula for book value per share is to divide this book value by the number of common shares.

The formula for price to book value is the stock price per share divided by the book value per share. The stock price per share can be found as the amount listed as such through the secondary stock market. Net income on a per share basis is referred to as eps or earnings per share.

Book value per share shareholders equity preferred equity total outstanding common shares. Book value per share stockholder s equity total number of outstanding common stock for example if there are 10 000 outstanding common shares of a company and each share has a par value of 10 then the value of outstanding share amounts to 100 000. Current assets 70 000.

Book value per share is determined by dividing common shareholders equity by total number of outstanding shares. Book value per share 1 50 000 25 000 5 000. The book value per share is considered to be the total equity for common stockholders which can be found on a company s balance sheet.

1 776 000 100 000 shares 17 76 per share of common stock 2. Book value per share. If company has issued common as well as preferred stock.