Market Price To Book Value Per Share Formula

Here s the price to book value formula.

Market price to book value per share formula. The formula is represented as 2 market to book ratio formula market capitalization total book value. The market price per share is simply the current stock price that the company is being traded at on the open market. It s calculated by dividing the company s stock price per share by its book value per share bvps.

The price to book ratio formula is calculated by dividing the market price per share by book value per share. Market capitalization net book value. The book value per share is a little more complicated.

The market to book formula is. Here s the formula of price to book value price to book value ratio market price per share book value per share. The market to book value ratio is calculated by dividing the current market price per share by the book value per share as per the most recent quarter for the company.

Market to book ratio formula. The stock price per share can be found as the amount listed as such through the secondary stock market. 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.

1 market to book ratio formula market value of stock book value per share on the other hand it can also be calculated by dividing the market capitalization by the total book value or tangible net worth of the company. Share price net book value per share. Where net book value total assets total liabilities.

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. This ratio is used by the investors and other stakeholders to understand how the company is performing or the market s perception about the company and particular stock. 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.