Company Book Value Calculator

Two of the most common business valuation formulas begin with either annual sales or annual profits also known as seller discretionary earnings multiplied by an industry multiple.

Company book value calculator. The book value per share calculator is used to calculate the book value per share. You can find these figures on the company s balance sheet. It is calculated by the company as shareholders equity book value divided.

The book value per share is the value each share would be worth if the company were to be liquidated all the bills paid and the assets distributed. Uses of book value. The value of the assets is largely dependent on the book value.

Both methods are great starting points to accurately value your business. The formula states that the numerator part is what the firm receives by the issuance of common equity and that figure increases or decreases depending upon the company is making profit or loss and then finally it decreases by issuing dividend and preference stock. To calculate the book value of a company subtract the dollar value of the company s preferred stock from its shareholders equity.

You can also determine the book value per share once you know the book value and shares outstanding. This is done by comparing the book value figure with the market value of the company. The 1 st part will be to find out the equity which is available to its common shareholders.

Book value per share definition. A business valuation calculator helps buyers and sellers determine a rough estimate of a business s value.