Book Value Per Share Equation
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 share equation. If the value of bvps exceeds the market value per share the. 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 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.
Roe is net income divided by stockholder s 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.