Book Value Per Share Preferred Stock

When calculating the book value per share of a company we base the calculation on the common stockholders equity stockholders equity stockholders equity also known as shareholders equity is an account on a company s balance sheet that consists of share capital plus and the preferred stock should be excluded from the value of equity.

Book value per share preferred stock. To find the equity you should subtract the company s liabilities from its assets. In other words divide the applicable equity by the number of shares. Calculate the total book value of a corporation s preferred stock by multiplying the book value of each share by the total number of shares outstanding.

For example if the book value of the company s preferred stock is 120 per share and there are 1 million outstanding shares the total book value of the company s preferred shares is 120 million. This will give you the amount of net assets that each preferred share owns or has the rights to. 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.

The book value per preferred share is calculated by dividing the call price or par value plus the cumulative dividends in arrears by the number of outstanding preferred shares. Total equity preferred equity and total outstanding shares.