Book Value Per Share Meaning

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.

Book value per share meaning. 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 book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. Book value is based on the amount the company has invested in its assets but not their current market value.

Book value of equity per share abbreviated as bvps is a company s available equity to common shareholders apportioned by the number of outstanding common shares. What is book value per share. Learn more about how to calculate this ratio what it tells you and how investors use it to guide their decisions.

In other words this measures a company s total assets minus its total liabilities on a per share basis. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. If the market value per share is lower than the book value per share then the stock price may be undervalued.

Book value per share compares the amount of stockholders equity to the number of shares outstanding. 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. In the case that the firm dissolves it is the amount the shareholders will receive.

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. Book value per share is a fairly conservative way to measure a stock s value. The book value per share bvps is a ratio that weighs stockholders total equity against the number of shares outstanding.

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 of a company stripped to basics is the value of the company the stockholders will own if the firm s. What is the book value per share bvps.