Net Book Value Per Share Calculation
Based on the above formula calculation of book value of equity of rsz ltd can be done as 5 000 000 200 000 3 000 000 700 000 8 900 000 therefore the company s common equity is 8 900 000 as on the balance sheet date.
Net book value per share calculation. Book value per share bvps takes the ratio of a firm s common equity divided by its number of shares outstanding. Book value of equity per share effectively indicates a firm s net asset value. The formula for calculating nbv is as follows.
Net income on a per share basis is referred to as eps or earnings per share. How to compute net worth per share. As shown at the top of this page book value per share is expressing stockholder s equity on a per share basis.
Calculating net book value. If the value of bvps exceeds the market value per share the. The formula for price to book value is the stock price per share divided by the book value per share.
Book value per share bvps is a measure of value of a company s common share based on book value of the shareholders equity of the company. It is the amount that shareholders would receive if the company dissolves realizes cash equal to the book value of its assets and pays liabilities at their book value. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis.
Net asset value per share navps is an expression for net asset value that represents the value per share of a mutual fund an exchange traded fund etf or a closed end fund. Accumulated depreciation per year depreciation x total number of years. When determining whether you want to invest in a company you may use financial ratios and calculations based on information from its financial statements to help make your decision.
Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company. This tells you. 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.