Calculator For Book Value

The larger the common stock holder s equity the larger the book value per share.

Calculator for book value. Consequently higher book value represents a greater return for the investors and shareholders. You can also determine the book value per share once you know the book value and shares outstanding. To calculate the book value of a company subtract the dollar value of the company s preferred stock from its shareholders equity.

Then determine the asset s accumulated depreciation which is how much value the asset loses over time. Uses of book value. The book value per share is a measure of a stocks value relative to the total common stockholder s equity.

Book value of equity represents the fund that belongs to the equity shareholders and is available for the distribution to the shareholders and it is calculated as the net amount remaining after the deduction of all the liabilities of the company from its total assets. Book value per share will be bvps 495 61 book value calculator. Book value is used to determine the market position of a company.

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 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. The price to book ratio formula sometimes referred to as the market to book ratio is used to compare a company s net assets available to common shareholders relative to the sale price of its stock.

The formula for price to book value is the stock price per share divided by the book value per share. The image above represents book value. Therefore the calculation of book value per share will be as follows bvps total common shareholders equity preferred stock number of outstanding common shares 2 93 491 00 cr 592 18 cr.

The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. You can use this book value calculator. To compute for book value four essential parameters are needed and these parameters are present amount or worth p salvage value s total estimated life of the asset n and number of years of the asset t.