Book Value Ratio Formula
Here s the formula of price to book value price to book value ratio market price per share book value per share.
Book value ratio formula. Alternatively book value can be calculated as the sum total of the overall shareholder equity of the company. Companies use the price to book ratio p b ratio to compare a firm s market capitalization to its book value. Formula to calculate book value of a company book value formula calculates the net asset of the company derived by total of assets minus the total liabilities.
The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.
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