Book Per Share Formula

Book value per share 2.

Book per share formula. The book value per share is the minimum cash value of a company and its equity for common shareholders. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. The formula for book value per share requires three variables.

Total equity preferred equity and total outstanding shares. By using the book value per share formula. 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.

What is book value per share formula bvps. Be sure to use the average number of shares since the period end amount may incorporate a recent stock buyback or issuance which will skew the results. The book value per share is calculated by dividing a company s total equity value by its total number of shares 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. The book value per common share formula below is an accounting measure based on historical transactions.

Book value per share total common stockholders equity preferred stock number of common shares. This figure represents the minimum value of a company s. Bvps frac total shareholder equity preferred equity total outstanding.

To find the equity you should subtract the company s liabilities from its assets. The formula for book value per share is to subtract preferred stock from stockholders equity and divide by the average number of shares outstanding. 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.