Book Equity Per Share Formula

This value is calculated as.

Book equity per share formula. This figure represents the minimum value of a company s. Bvps value of common equity number of shares outstanding. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares.

While this is usually found on a balance sheet it is helpful to know how to retrieve this value yourself. Bvps 50 000 2000 25 per share. Book value per share formula of utc company shareholders equity available to common stockholders number of common shares.

Investors need to look at both the book value and market value of the share. Calculating book value of equity per share the book value of equity per share is calculated by linking the original value of the common stock of a firm adjusted for any outflow and inflow modifiers to the amount of outstanding shares. If the investors can find out the book value of common stocks she would be able to figure out whether the market value of the share is worth it.

Net income on a per share basis is referred to as eps or earnings per share. Outstanding the formula requires you to know the company s total equity. Book value per share formula bvps dfrac total.

The equity is the total number of assets after liabilities are subtracted. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis.