Net Book Value Per Share Formula

Roe is net income divided by stockholder s equity.

Net book value per share formula. Let s assume that the company jack ltd purchased plant and. Shareholders equity preferred shares. Accumulated depreciation here means total depreciation charged or accumulated by the company on its assets till the date of the calculation of the net book value of the asset.

Original purchase cost here means the purchase price of the asset paid at the time when the company purchased the assets. Calculating net book value. The book value per common share formula below is an accounting measure based on historical transactions.

Book value per share conclusion the book value per share is the minimum cash value of a company and its equity for common shareholders. To find the equity you should subtract the company s liabilities from its assets. Book value per share is determined by dividing common shareholders equity by total number of outstanding shares.

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. 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. Bvps frac total shareholder equity preferred equity total outstanding.

Sample calculation of net book value. Net income on a per share basis is referred to as eps or earnings per share. Net book value original asset cost accumulated depreciation.

The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Total equity preferred equity and total outstanding shares. Book value per share.