Book Value Per Share Formula Philippines

If the value of bvps exceeds the market value per share the.

Book value per share formula philippines. Total equity preferred equity and total outstanding shares. If the total value of a company is 10 million and it has 1 million shares of stock outstanding. 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.

Net income on a per share basis is referred to as eps or earnings per share. Total number of outstanding shares. How to increase book value per share.

Say on a stock exchange the price of a company s stock in the example above is idr3 per share. You can divide this amount by the number of outstanding shares to determine the book value per share. Since the book value per share is idr1 8 the stock is overvalued and the share price will likely go down.

This is the net worth of the company and net worth is actually the book value of the company. With the example above the book value is 500 000 pesos. Book value per share conclusion.

Now the shares will trade at whatever value the market gives them based on future expectations being good or bad and technical price action patterns the book value is only the current fundamental intrinsic value of the company based on. It has a 10 per share book value. If there are 100 000 shares held by all investors then bvps is 5 pesos per share.

The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. To find the equity you should subtract the company s liabilities from its assets. In balance sheet look for the word retained earnings or equity section or shareholder s equity.