How To Calculate Book Value Per Share Formula
This shows anand group of a company have the book value per share of 2.
How to calculate book value per share formula. To find book value per ordinary share solution. It is also called market to book ratio. 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.
Outstanding the formula requires you to know the company s total equity. While this is usually found on a balance sheet it is helpful to know how to retrieve this value yourself. Book value per share will be bvps 495 61 book value calculator.
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. Book value per share shareholders equity preferred equity total outstanding common shares. Calculate the book value per share of the international corporation.
Roe is net income divided by stockholder s equity. 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 book value per common share formula below is an accounting measure based on historical transactions.
Price to book value formula the price to book value can be defined as a market value of a firm s equity divided by the book value of its equity. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.
When corporate finance institute. Book value per share 25 000 000 5 000 000 10 000 000. The equity is the total number of assets after liabilities are subtracted.