Book Value Formula Calculator

Roe is net income divided by stockholder s equity.

Book value formula calculator. It shows the current position of the asset base after liabilities are taken into account. Divide 35 million by 1 4 million shares for a book value per share of 25. The first equation deducts accumulated depreciation from the total assets to get the.

In the example above the asset s book value after 6 years would be 10 000 6000 or 4000. Suppose a company has a book value of 35 million and there are 1 4 million common shares outstanding. Price to book value rs 100 rs 30.

Book value formula calculates the net asset of the company derived by total of assets minus the total liabilities. As shown at the top of this page book value per share is expressing stockholder s equity on a per share basis. Price to book value 3 33.

In the uk book value is also known as net asset value. 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 per share book value of equity total shares outstanding.

Book value per share 30 1. Alternatively book value can be calculated as the sum total of the overall shareholder equity of the company. It can be useful to compare the market price of shares to the book value.

Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. It can be defined as the net asset value of the firm or of the company that. To arrive at the book value simply subtract the depreciation to date from the cost.