Book Value Per Share Net Asset Value

The information needed to calculate bvps is found on a company s balance sheet.

Book value per share net asset value. 162 582 totals 300 000 600 082 shares outstanding 4 000. What is the book value per share bvps. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.

Book value per share is a ratio that compares the net asset value of a company minus preferred equity to the total number of common shares available on the market. 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. Comparing bvps to a stock s market price could help value investors find opportunities.

The computation becomes more complicated if a company has preferred stock. As explained by investopedia net asset value per share navps refers to the value of a single unit or share or a fund. Net book value nbv refers to a company s assets or how the assets are recorded by the accountant.

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. For the average investor my take is you probably don t need to worry about these details. Book value per share is computed as net assets divided by outstanding stock at the end of the year.

The net asset value per share can be defined as an expression for net asset value that indicates the value per share for a fund exchange traded mutual and closed end or a company. It is calculated by. 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.

Nbv is calculated using the asset s original cost how much it cost to acquire the asset with the depreciation depletion or amortization. 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 asset value or nav is used as a. The differences between a book value per share calculation and a net asset value per share calculation are fairly small but the difference in valuation can be quite large when comparing these metrics amongst the reit prices in question.