Book Value Per Share Liquidation

Example of a liquidation.

Book value per share liquidation. Book value per share growth is a reliable tool to forecast future performance. 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. Higher book value means the shares have more liquidation value.

We note that the total number of basic shares outstanding is 222 412 000 source. If book value per share is calculated with just common stock in the denominator then it results in a measure of the amount that a common shareholder would receive upon liquidation of the company. The book value per share is the amount of the assets that will go to common equity in the event of liquidation.

What is the book value per share bvps. Liquidation is the difference between some value of tangible assets and liabilities. Thus its the residual value after paying off all the liabilities debt borrowings and payables and preference holders in the event of liquidation.

It indicates the level of safety associated with each common share after removing the effects of liabilities. Also assume the book. Step 5 find per share liquidation value of fitbit.

Thus it s a true value of a business. Book value per share b s is can be calculated by subtracting liabilities from assets and then dividing it by the total number of currently 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.

In order to find the per share liquidation value we require the total number of shares outstanding. As an example assume liabilities for company a are 550 000. Should the company dissolve the book value per.