Book Value Per Preferred Share Formula
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 per preferred share formula. Below you will find descriptions and details for the 1 formula that is used to compute book values per share for preferred stock. The equity is the total number of assets after liabilities are subtracted. Alternatively book value can be calculated as the sum total of the overall shareholder equity of the company.
Calculate the total book value of a corporation s preferred stock by multiplying the book value of each share by the total number of shares outstanding. Outstanding the formula requires you to know the company s total equity. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.
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. Where l is the liquidation value of preferred stock d is the amount of preferred dividends in arrears and s is the number of preferred shares outstanding. While this is usually found on a balance sheet it is helpful to know how to retrieve this value yourself.
The book value per common share formula below is an accounting measure based on historical transactions. In other words divide the applicable equity by the number of shares. Book value indicates the difference between the total assets and the total liabilities and when the formula for book value per share is to divide this book value by the number of common shares.
Book value per share total common stockholders equity preferred stock number of common shares. Bvps frac total shareholder equity preferred equity total outstanding. Formula to calculate book value of a company book value formula calculates the net asset of the company derived by total of assets minus the total liabilities.
Book value per share of preferred stock.