Equal Book Value Per Share

Learn more about how to calculate this ratio what it tells you and how investors use it to guide their decisions.

Equal book value per share. Book value per share. An asset s book value is equal to its carrying value on the balance sheet and companies. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.

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. 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. It is the amount that shareholders would receive if the company dissolves realizes cash equal to the book value of its assets and pays liabilities at their book value.

In other words this measures a company s total assets minus its total liabilities on a per share basis. This figure represents the minimum value of a company s. The price to book p b ratio is a popular way to compare market value and book value.

Book value per common share or simply 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. It s calculated by dividing the company s stock price per share by its book value per share bvps. It is equal to the price per share divided by the book value per share.

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. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares.