Book Value Per Share Calculation Example

Using the p b ratio formula we get p b ratio formula market price per share book value per share.

Book value per share calculation example. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Or p b ratio 105 84 5 4 1 25. To find out the p b ratio formula we need the market price per share and book value per share.

Total number of outstanding shares. With an understanding of what the bvps means ashley can compare this result with how the company is trading on the market. 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. We enter our numbers as.

In contrast to book value the market price reflects the future growth potential of the company. Book value per share. Hp is trading at 2 0 times book value.

Book value per share formula example 3. In the above example we know both. If the value of bvps exceeds the market value per share the.

Price to book value ratio of citigroup. Book value per share 1 50 000 25 000 5 000. Calculating book value example 2.