Book Value Per Share Example India

It is the amount that shareholders would receive if the company dissolves realizes cash equal to the book value of its assets and pays liabilities at their book value.

Book value per share example india. Book value is a company s assets minus its liabilities. Preferred stock 20 000. And the median was 11 30 per year.

Book value per share for valuation. Ashley looks at their stock chart and finds their equity is 9 6 million. Let s take a simple book value per share example utc company has the following information total assets at the end of the year 150 000.

It will reduce the current shares outstanding to 2 5 million 3 000 000 500 000. In simple terms it would be the amount of money that a share holder would get if a company. In contrast to book value the market price reflects the future growth potential of the company.

India international marketing centre book value. Ashley has invested in a soda company that is rising in popularity throughout the midwest. This example is referred to as price to book value p b in which book value per share is used in the denominator.

Number of common shares 2000 shares. Price to book value bse the price to book value ratio is calculated considering the book value as per the latest available balance sheet. For example a company that is currently trading for 20 but has a book value of 10 is selling at twice its equity.

Using the previous example assume that the company repurchases 500 000 common stocks from its shareholders. One of the main ways of increasing the book value per share is to buy back common stocks from shareholders. During the past 13 years the highest 3 year average book value per share growth rate of state bank of india was 19 70 per year.