Book Value Of Equity Per Share Formula

Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes.

Book value of equity per share formula. The formula for book value per share requires three variables. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. If the value of bvps exceeds the market value per share the.

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. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. 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.

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. Total equity preferred equity and total outstanding shares. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.