Book Value Per Share Of Common Stock Of A Manufacturing Company

Therefore book value per share book value shares outstanding.

Book value per share of common stock of a manufacturing company. Book value per share formula above assumes common stock only. 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. Calculate book value per share from the following stockholders equity section of a company.

Book value per share of common stock of a manufacturing company. 2 576 000 800 000 48 000 100 000 shares 1 728 000 100 000 shares 17 28 per share of common stock. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.

Is calculated by dividing market value per share by earnings per share. And book value per share bvps will 14 000 000 900 000 15 56. Book value per share of common stock of a manufacturing company.

Is not a very useful measure most of the time is calculated by dividing market value per share by earnings per share reflects the fair value of the company s stock is the same as the total balance sheet asset value per share of common stock. After the share repurchase the company will then have 1 000 000 100 000 900 000 shares outstanding. Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company.

Assume for example that xyz manufacturing s common equity balance is 10 million and that 1 million shares of common stock are outstanding which means that the bvps is 10 million 1 million. 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. If there is preferred stock outstanding in the book value per share calculation above the numerator will need to be adjusted by the value of the preferred stock outstanding to get the stock holder s equity attributable to the common stock holder.

Shareholders equity or book value will become 15 000 000 1 000 000 14 000 000. Is not a very useful measure most of the time. Reflects the fair value of the company s stock.