Eps And Book Value Per Share Formula

Carry value or book value eps is the real cash worth of each share of company stock.

Eps and book value per share formula. In contrast to book value the market price reflects the future growth potential of the company. This video provides a basic introduction into the price to earnings ratio and earnings per share value. Total equity preferred equity and total outstanding shares.

The formula for book value per share requires three variables. The basic p e formula takes the current stock price and eps to find the current p e. In this case it refers to calculating eps earnings per share formula eps eps is a financial ratio which divides net earnings available to common shareholders by the average outstanding shares over a certain period of time.

Roe is net income divided by stockholder s equity. Earnings per share formula. There are several ways to calculate earnings per share.

Eps is found by taking earnings from the last twelve months divided by the weighted average shares outstanding. Eps for a company with preferred and common stock net income preferred. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.

Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. Cash eps is the. The book value per share is the minimum cash value of a company and its equity for common shareholders.

Net income on a per share basis is referred to as eps or earnings per share. Below are two versions of the earnings per share formula. Eps net income preferred dividends weighted average shares outstanding.