Average Book Value Calculator

Fill in the 10 years federal note discount rate.

Average book value calculator. The formula used to calculate the net book value of the assets is as below. Therefore the calculation of book value per share will be as follows bvps total common shareholders equity preferred stock number of outstanding common shares 2 93 491 00 cr 592 18 cr. Conceptually depreciation is the reduction in value of an asset over time due to elements such as wear and tear.

As per the balance sheet the book value is say 4 000 000. To arrive at the book value simply subtract the depreciation to date from the cost. Assume a corporation having a share price of 5 in the stock market.

This is done by comparing the book value figure with the market value of the company. The value of the assets is largely dependent on the book value. For instance a widget making machine is said to depreciate when it produces less widgets one year compared to the year before it or a car is said to depreciate in value after a fender bender or the discovery of a faulty transmission.

The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. Sum of net book values years of investment 1 450m w4 5 1 75m. Market to book value ratio 5 2 000 000 4 000 000 2 5.

Use of price to book value formula the price to book value formula can be used by investors to show how the market perceives the value of a particular stock to be. 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. 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.

Current book value per share. Note that the book value of the asset can never dip below the salvage value even if the calculated expense that year is large enough to put it below this value. Book value is used to determine the market position of a company.