Book Value Equation Formula

Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis.

Book value equation formula. Calculating net book value. Net book value original asset cost accumulated depreciation. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes.

You can use this book value calculator. Book value may also be. 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.

Book value of assets formula. The stock price per share can be found as the amount listed as such through the secondary stock market. Accumulated depreciation per year depreciation x total number of years.

This number is determined by dividing the company s total amount of stockholders equity by the number of outstanding shares of common stock. The formula for price to book value is the stock price per share divided by the book value per share. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.

Depreciation periodic reduction in the value of the asset amortized as per standards. In this equation book value per share is calculated as follows. 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.

The book value of a share of stock is represented as book value per share. 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. Sample calculation of net book value.