Book Value Per Share Vs Book Value
It is equal to the price per share divided by the book value per share.
Book value per share vs book value. 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. Market value per share vs. The price to book p b ratio is a popular way to compare market value and book value.
What is the book value per share bvps. Admittedly the two terms sound similar. For example if a company has 23 2 billion in assets and 19 3 billion in liabilities the book value of the company would be the difference 3 9 billion.
Book value per share while bvps is calculated using historical costs the market value per share is a forward looking metric that takes into account a company s future. 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.