Book Value Of Equity Formula
Calculate book value of equity by subtracting a firm s total liabilities from its total assets to arrive at stockholders equity.
Book value of equity formula. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes. 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 of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares.
You can find these figures on the balance sheet. Equity assets liabilities. This figure represents the minimum value of a company s.
Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. This means if the company dissolves the shareholders will receive an amount per share as per book value per share. Book value of equity formula.
Book value per share represents equity of the firm on per share basis. Using the accounting equation the book value of equity formula can be stated as follows. The formula for book value per share book value of equity total number of outstanding shares.