Book Value Per Share Vs Price To Book

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Book value per share vs price to book. A bad investment and a higher ratio greater than 1 could mean the stock is overvalued i e. The book value per share 2 50 or 25 million bv 10 million shares price to book ratio 2 or 5 stock price 2 50 book value per share. The price to book p b ratio is a popular way to compare market value and book value.

Share price net book value per share. The book value per share is a little more complicated. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.

Many argue the opposite. 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. Also defined as a firm s next asset value book value per share is essentially the total assets of a company but not counting a firm s assets and liabilities.

When book value per share is high. The stock price per share can be found as the amount listed as such through the secondary stock market. The price to book ratio formula is calculated by dividing the market price per share by book value per share.

A low ratio less than 1 could indicate that the stock is undervalued i e. What is the book value per share bvps. Sebelumnya analis co id sudah bahas semua info soal per nah sekarang kita bahas bagaimana cara menghitung pbv perusahaan serta contoh soal pbv.

Hanya saja tidak lengkap kalau kita lewatkan rumus nilai buku per lembar saham dan pengertian price to book value menurut para ahli. For example a company has a p b of. If the share price is 5 then the p b ratio would be 2x 5 2 50.