Book Value Market Value Formula
Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes.
Book value market value formula. Book value per share rs 30 per share. This ratio is used by the investors and other stakeholders to understand how the company is performing or the market s perception about the company and particular stock. Book value per share 30 1.
Book value per share will be bvps 495 61 book value calculator. Price to book value 3 33. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes.
The market price per share is simply the current stock price that the company is being traded at on the open market. 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 market value of a company is the.
Share price net book value per share. The market value of a company is calculated by multiplying the market price per share of the company with the number of outstanding shares. Price to book value is calculated as.
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. Price to book value market price per share book value per share. Book value may also be.
Where net book value total assets total liabilities. Taking assumed values for the following. Price to book value rs 100 rs 30.