Total Book Value Of Equity Formula

T4 book value of equity total liability.

Total book value of equity formula. Book value of equity also known as shareholder s equity is a firm s common equity that represents the amount available for distribution to shareholders. For healthy companies equity value far exceeds book value as the market value of the company s shares appreciates over the years. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes.

This figure represents the minimum value of a company s. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. Here total assets refers to assets present at the particular point and total liabilities means liability during the same period of time.

Calculate book value of equity by subtracting a firm s total liabilities from its total assets to arrive at stockholders equity. You can find these figures on the balance sheet. For example in apple s 1q report released february 1 2018 the company reported total assets of 406 794 billion and liabilities of 266 595 billion.

If we apply it to the formula book value of equity total assets total liabilities. It is calculated by multiplying a company s share price by its number of shares outstanding whereas book value or shareholders equity is simply the difference between a company s assets and liabilities. The formula for calculating book value per share is the total common stockholders equity less the preferred stock divided by the number of common shares of the company.

Book value us 375 32 billion us 241 27 billion us 134 05 billion. Book value per share. The book value of equity is equal to total assets minus total liabilities preferred stocks and intangible assets.

For the purpose of analysis the book value of equity is further divided by a total number of shares to make book value per share. The formula to calculate market value of equity is as follows market value of equity market price per share x total number of outstanding shares let us understand it with an example as on 18th april 2018 the share price of walmart is us 87 89 then its market value of equity is. Book value may also be.