Book Value Per Share Financial Statements

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 financial statements. 15 000 000 stockholders equity 3 000 000 preferred stock 2 000 000 average shares outstanding 6 00 book value per share. Problems with book value per share. In other words this measures a company s total assets minus its total liabilities on a per share basis.

Example of book value per share. The price to book p b ratio is a popular way to compare market value and book value. 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.

This calculation is often modified to exclude intangible assets because they are not readily convertible to cash in which case the calculation is called the tangible book value per share. We first subtract the total liabilities from the total assets and divide the difference by the total number of shares outstanding on that date. Learn more about how to calculate this ratio what it tells you and how investors use it to guide their decisions.

Abc international has 15 000 000 of stockholders equity 3 000 000 of preferred stock and and an average of 2 000 000 shares outstanding during the measurement period. Book value per share equals total assets minus total liabilities divided by total outstanding shares. Information in this page will become available upon submission of the company of its latest financial statements.

The book value per share is a little more complicated. Decide whether you want book value per share or tangible book value per share. Unlike the pb ratio the mb formula compares values on a company wide basis.

Item current year 3 months previous year 3 months current year to date previous year to date. The book value per share bvps is a ratio that weighs stockholders total equity against the number of shares outstanding. Use of book value per share the book value per share may be used by some investors to determine the equity in a company relative to the market value of the company which is the price of its stock.