Book Value Per Common Share Equation

Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares.

Book value per common share equation. To find the equity you should subtract the company s liabilities from its assets. The formula for book value per share requires three variables. The book value per share is the minimum cash value of a company and its equity for common shareholders.

Book value per share 1 25 000 5 000. Book value per share shareholders equity preferred equity total outstanding common shares. Total equity preferred equity and total outstanding shares.

Current assets 70 000. Book value per share total common stockholders equity preferred stock number of common shares. 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.

Calculate book value per share from the following stockholders equity section of a company. 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. Book value per share 25.

Book value per share of jagriti group of companies is 25. If company has issued common as well as preferred stock. Book value per share 1 50 000 25 000 5 000.

Book value per share formula example 3. This figure represents the minimum value of a company s. 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.