What Is Book Value Per Share Formula
The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.
What is book value per share formula. If the value of bvps exceeds the market value per share the. 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. Bvps frac total shareholder equity preferred equity total outstanding.
The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares.