Book Value Per Common Share Formula
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 per common share formula. 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. To find the equity you should subtract the company s liabilities from its assets.
The book value per share is the minimum cash value of a company and its equity for common shareholders. The formula for book value per share requires three variables. Book value per share conclusion.
If the value of bvps exceeds the market value per share the. The book value per common share formula below is an accounting measure based on historical transactions.