Book Value Per Share Formula

Total equity preferred equity and total outstanding shares.

Book value per share formula. Book value per share conclusion the book value per share is the minimum cash value of a company and its equity for common shareholders. Shareholders equity preferred shares. The formula for book value per share requires three variables.

Total number of outstanding shares. Total outstanding shares total number of shares issued shares as treasury stock. To find the equity you should subtract the company s liabilities from its assets.

That is the amount that ordinary shareholders will receive when the company is liquidated. 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 is determined by dividing common shareholders equity by total number of outstanding shares.

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 per share. Book value per share is the ratio of shareholders equity to the average ordinary shares common stock outstanding.

The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity. 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. What is the book value per share.