Book Value Per Common Share Is Computed By
Calculate book value per share from the following stockholders equity section of a company.
Book value per common share is computed by. If company has issued common as well as preferred stock. The calculation of its book value per share is. Book value per common share is calculated by dividing the stockholders equity applicable to common shareholders by the number of outstanding 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. Book value per share 193 000 60 000 3000 10 000 13 per share of common stock. Notice the only the equity applicable to common shareholders is used.
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. 1 776 000 100 000 shares 17 76 per share of common stock 2.
What is book value per share bvps. Book value per common share is computed by. Shareholders equity preferred equity average number of common shares 20 million 5 million 5 million 15 million 5 million.
Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. The new formula for book value per share stockholders equity preferred stock arrears no. Dividing stockholders equity applicable to common shares by the number of common shares outstanding.
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. 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. Multiplying the number of common shares outstanding times the market price per common share.