Book Value Per Share Formula Investopedia

Book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes examples of book value of equity calculations with excel template example 1.

Book value per share formula investopedia. Price to book ratio formula can be calculated by dividing the market price per share by the book value per share. Whereas book value per share is complicated. 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.

Market value per share is obtained by simply looking at the. It is possible to get the price per book value by dividing the market price of a company s shares by its book value per share. The stock price per share can be found as the amount listed as such through the secondary stock market.

Total assets total liabilities number of shares outstanding. The book value per share bvps is a ratio that weighs stockholders total equity against the number of shares outstanding. 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.

The formula for price to book value is the stock price per share divided by the book value per share. Book value per share bvps takes the ratio of a firm s common equity divided by its number of shares outstanding. The book value per share is considered to be the total equity for common stockholders which can be found on a company s balance sheet.

In other words this measures a company s total assets minus its total liabilities on a per share basis. Current stock of the company which company is being trading in the open market is called market price per share. The formula for calculating book value per share is the total common stockholders equity less the preferred stock divided by the number of common shares of the company.

Price to book ratio market price per share book value per share.