Formula For Calculating Book Value Per Share
The equity is the total number of assets after liabilities are subtracted.
Formula for calculating book value per share. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. When corporate finance institute.
Book value per share formula of utc company shareholders equity available to common stockholders number of common shares. Outstanding the formula requires you to know the company s total equity. Roe is net income divided by stockholder s equity.
While this is usually found on a balance sheet it is helpful to know how to retrieve this value yourself. Do the calculation of book value of equity of the company based on the given information. The book value per share is calculated using historical costs but the market value per share is a forward looking metric that takes into account a company s earning power in the future.
Total outstanding shares total number of shares issued shares as treasury stock. Total outstanding shares may change due to share buybacks or the issuance of new shares. Total number of outstanding shares.
Bvps 50 000 2000 25 per share. Shareholders equity preferred shares. Book value per share formula bvps dfrac total.
Book value per share of jagriti group of companies is 47 14. Book value per share. Net income on a per share basis is referred to as eps or earnings per share.