Book Value Per Share Is The Same As

Book value per share is the per share value of the equity of a company based on its financial statements.

Book value per share is the same as. Book value gives us the actual worth of the assets owned by the company whereas market value is the projected value of the firms or the assets worth in the market. Also defined as a firm s next asset value book value per share is. One must consider that the balance sheet may not reflect with certain accuracy what would actually occur if a company did sell all of their assets.

To better understand book value per share it helps to break down each aspect of the ratio. Book value is equal to the value of the firm s equity while market value indicates the current market value of any firm or any asset. Admittedly the two terms sound similar.

Book value per share is the same as. Conceptually book value per share is similar to net worth meaning it is assets minus debt and may be looked at as though what would occur if operations were to cease. It is essentially the book net worth of the company per equity share.

Book value per common share also known as book value per equity of share or bvps is used to evaluate the stock price of an individual company whereas net. The two are not comparable. It can be calculated based on the following formulas.

The price to book p b ratio is a popular way to compare market value and book value. The former is a state the latter is a flow. Of equity shares outstanding.

It is equal to the price per share divided by the book value per share. You can think of it as what would be left were the company to liquidate after all debts have been paid. Net tangible asset value per share.