Book Value Formula For Stock
The book value per share is the minimum cash value of a company and its equity for common shareholders.
Book value formula for stock. How to calculate book value. To find the equity you should subtract the company s liabilities from its assets. Book value per share conclusion.
Total equity preferred equity and total outstanding shares. The formula for book value per share requires three variables. The formula states that the numerator part is what the firm receives by the issuance of common equity and that figure increases or decreases depending upon the company is making profit or loss and then finally it decreases by issuing dividend and preference stock.
Book value may also be. 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.