Book Value Per Share Is
In the case that the firm dissolves it is the amount the shareholders will receive.
Book value per share is. To find the equity you should subtract the company s liabilities from its assets. Roe is net income divided by stockholder s equity. The formula for book value per share requires three variables.
Book value per share bvps is a ratio used to compare a firm s common shareholder s equity to the number of shares outstanding. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. The book value per share is the minimum cash value of a company and its equity for common shareholders.
What is book value per share bvps. Consequently it is dangerous to compare the two measures. The market value per share is a forward looking measure of what the investment community believes a company s shares are worth.
What is the definition of book value per shares. Net income on a per share basis is referred to as eps or earnings per share. Get all the key statistics for dbs d05 si including valuation measures fiscal year financial statistics trading records share statistics and more.
Conversely the book value per share is an accounting measure that is not forward looking at all. 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. To better understand book value per share it helps to break down each aspect of the ratio.
The book value is the total equity or net asset value of a company. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. The two measures are based upon different information.