Book Value Of Equity Per Share

What does book value of equity mean.

Book value of equity per share. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. The book value of equity is equal to total assets minus total liabilities preferred stocks and intangible assets. Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company.

The term book value of equity refers to a firm s or company s common equity which is the amount available that can be distributed among the shareholders and it is equal to the amount of assets shareholders own outright after all the liabilities have been paid off. Book value per share represents equity of the firm on per share basis. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.

Book value of equity per share abbreviated as bvps is a company s available equity to common shareholders apportioned by the number of outstanding common shares. 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. Book value is based on the amount the company has invested in its assets but not their current market value.

The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity. When compared to the current market value per share the book value per share can provide information on how a company s stock is valued. 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.

Dengan kata lain rasio book value per share ini digunakan untuk mengetahui berapa jumlah uang yang akan diterima oleh pemegang. 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. This figure represents the minimum value of a company s.

Pengertian book value per share nilai buku per saham dan rumusnya book value per share bvps atau dalam bahasa indonesia disebut dengan nilai buku per saham adalah rasio yang digunakan untuk membandingkan ekuitas pemegang saham dengan jumlah saham yang beredar. If the value of bvps exceeds the market value per share the.