Book Value Of Stock Calculator

The formula for price to book value is the stock price per share divided by the book value per share.

Book value of stock calculator. The annual depreciation would be calculated from the difference between it s cost and salvage value which would be 12 000 2 000 or 10 000. You can use this book value calculator. Online finance calculator which helps to calculate the book value per share from the values of stack holders equity preferred stock and total outstanding shares.

The stock price per share can be found as the amount listed as such through the secondary stock market. Uses of book value. 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.

It is calculated by the company as shareholders equity book value divided by the number of shares outstanding. The book value of a company derived from its balance sheet stand to be rs 40 whereas the shares are being sold in the market for a value of rs 100 then the price to book value ratio will be. 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.

Book value per common share calculator. This calculator will compute the book value per share for a company s common stock given the total shareholders equity the liquidation value of any preferred stock the amount of preferred dividends in arrears and the number of shares of common stock outstanding. The book value per share of common stock represents the right that each share of common stock has to a company s net assets.

This is done by comparing the book value figure with the market value of the company. 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. Price to book value p b ratio market price per share book value per share.

Consequently higher book value represents a greater return for the investors and shareholders. Book value is used to determine the market position of a company. The book value per share is considered to be the total equity for common stockholders which can be found on a company s balance sheet.