How To Find Book Value Per Share Formula
To find the equity you should subtract the company s liabilities from its assets.
How to find book value per share formula. The book value per common share formula below is an accounting measure based on historical transactions. Here s the formula of price to book value price to book value ratio market price per share book value per share. Book value per share shareholder s equity preferred equity total outstanding common shares.
Net income on a per share basis is referred to as eps or earnings per share. Book value per share formula of utc company shareholders equity available to common stockholders number of common shares. Total assets total liabilities number of shares outstanding.
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. The price to book value ratio p b formula is also referred to as a market to book ratio and measures the proportion between the market price for a share and the book value per share. Roe is net income divided by stockholder s equity.
Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. Total equity preferred equity and total outstanding shares. Bvps 50 000 2000 25 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. Now by using the below formula we can calculate book value per share. Market value per share is.
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. Book value per share 2 10 000 45 000 3500. Book value per share of jagriti group of companies is 47 14.