Book Value Of Equity Shareholders

Book value is based on the amount the company has invested in its assets but not their current market value.

Book value of equity shareholders. The book value of equity is equal to total assets minus total liabilities preferred stocks and intangible assets. In other words as suggested by the term itself it is that value of asset which reflects in the balance sheet of a company or books of a company. 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.

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

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. Book value of equity represents the fund that belongs to the equity shareholders and is available for the distribution to the shareholders and it is calculated as the net amount remaining after the deduction of all the liabilities of the company from its total assets.