Book Value Equity Formula

The book value of equity is equal to total assets minus total liabilities preferred stocks and intangible assets.

Book value equity formula. You can use this book value calculator. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. Following are the important components of the formula of book value.

The book value of equity is simply the difference between the total assets of a business and its total liabilities. Book value may also be. Using the accounting equation the book value of equity formula can be stated as follows.

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. 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. Book value of equity total assets total liabilities.

Book value of equity calculation. What is book value per share bvps. It is calculated by multiplying a company s share price by its number of shares outstanding whereas book value or shareholders equity is simply the difference between a company s assets and liabilities.

For example in apple s 1q report released february 1 2018 the company reported total assets of 406 794 billion and liabilities of 266 595 billion. Book value per share will be bvps 495 61 book value calculator. 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.

Book value of equity also known as shareholder s equity is a firm s common equity that represents the amount available for distribution to shareholders. You can find these figures on the balance sheet. Equity assets liabilities.