Book Value Per Share Of Common Stock Calculator

The book value per share is considered to be the total equity for common stockholders which can be found on a company s balance sheet.

Book value per share of common stock calculator. Book value per common share calculation. Book value per share stockholder s equity total number of outstanding common stock for example if there are 10 000 outstanding common shares of a company and each share has a par value of 10 then the value of outstanding share amounts to 100 000. 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.

Formula of book value per common share. To illustrate how to calculate stock value using the dividend growth model formula if a stock had a current dividend price of 0 56 and a growth rate of 1 300 and your required rate of return was 7 200 the following calculation indicates the most you would want to pay for this stock would be 9 61 per share. In our example 80 000 divided by 50 000 shares equals a book value per share of common stock of 1 60.

Example of book value per common share international corporation has 2000000 of stockholders equity 500000 of preferred stock and total of 300000 shares outstanding during the measurement period. If the value of bvps exceeds the market value per share the. Book value per common share calculator online finance calculator which helps to calculate the book value per share from the values of stack holders equity preferred stock and total outstanding shares.

Divide the available equity by the common shares outstanding to determine the book value per share of common stock. The book value per share is the value each share would be worth if the company were to be liquidated all the bills paid and the assets distributed. In the example 100 000 minus 20 000 equals 80 000 of available equity.

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 stock holders equity preferred stock total 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.

It is calculated by the company as shareholders equity book value divided by the number of shares outstanding. Book value per share calculator for common stock this calculator will compute the book value per share for a company s common stock given the total shareholders equity the liquidation value of any preferred stock the amount of preferred dividends in arrears and the number of shares of common stock outstanding.